Seoul: Stocks rebound ahead of Fed chair's testimony

[SEOUL] South Korean shares rebounded on Tuesday, as investors focused on the Federal Reserve's upbeat view on the US economy, while eyeing the debate among the central bank officials around an earlier-than-expected tapering in its emergency support measures.

The won strengthened and the benchmark bond yield rose.

The Kospi closed up 23.09 points or 0.71 per cent at 3,263.88, bouncing back from a 0.83 per cent decline on Monday.

While Fed chair Jerome Powell has said that the US economy continues to show "sustained improvement" and forecast more gains in the job market, other central bank officials' differing views have begun a debate around an early tapering.

Eyes are on Mr Powell's testimony to Congress later in the day.

Among the heavyweights, technology giant Samsung Electronics rose 0.13 per cent, while battery maker LG Chem and Hyundai Motor added 2.43 per cent and 3.43 per cent, respectively.

Foreigners were net buyers of 318.5 billion won (S$378.5 million) worth of shares on the main board.

The won ended at 1,131.9 per dollar on the onshore settlement platform, 0.25 per cent higher than its previous close at 1,134.7.

In offshore trading, the won was quoted at 1,132.2 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,132.1.

In money and debt markets, September futures on three-year treasury bonds rose 0.11 point to 110.29.

The most liquid three-year Korean treasury bond yield fell by 2.3 basis points to 1.328 per cent, while the benchmark 10-year yield rose by 4.1 basis points to 2.047 per cent.

REUTERS