Seoul: Stocks rebound despite hawkish Fed view, higher oil prices

[SEOUL] South Korean shares bounced back on Tuesday (Mar 22), defying overnight weakness on Wall Street as investors brushed off Federal Reserve Chief Jerome Powell's hawkish remarks and sought bargains. The won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended up 23.95 points, or 0.89 per cent, at 2,710, its highest close since Mar 4. It declined 0.78 per cent on Monday.

Leading the gains, chip giants Samsung Electronics and SK Hynix rose 0.57 per cent and 1.23 per cent, respectively, while battery maker LG Energy Solution added 2.98 per cent.

Powell on Monday delivered his most muscular message to date on his battle with too-high inflation, saying the central bank must move "expeditiously" to raise rates and possibly "more aggressively".

Meanwhile, oil prices rose after some European Union members were reported to be considering imposing sanctions on Russian oil amid jitters over attacks on Saudi oil facilities.

"Markets seem to have priced in hawkish remarks by Fed Chief Powell, which only had limited impact on Kospi," Lee Kyoung-min, an analyst at Daishin Securities, said.

Foreigners were net sellers of 114.1 billion won (S$127.3 million) worth of shares on the main board.

The won was quoted at 1,218.1 per dollar on the onshore settlement platform, 0.15 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,218.3, while in non-deliverable forward trading its 1-month contract was quoted at 1,218.

In money and debt markets, June futures on 3-year treasury bonds fell 0.38 point to 107.03.

The most liquid 3-year Korean treasury bond yield rose by 12.2 basis points to 2.39 per cent, while the benchmark 10-year yield rose by 8.8 basis points to 2.829 per cent. REUTERS