Seoul: Stocks rebound from 3-day rout on Wall Street, China rally; Fed in focus

[SEOUL] South Korean shares rebounded from a 3-day rout on Wednesday (Mar 16), tracking an overnight rally on Wall Street ahead of the US Federal Reserve meeting and as risk appetite improved following an afternoon surge in Chinese equities on hopes for more economic stimulus.

The won strengthened, while the benchmark bond yield rose.

The benchmark Kospi ended up 37.70 points, or 1.44 per cent, at 2,659.23, after closing at its lowest level in nearly 7 weeks on Tuesday.

Leading the gains, chipmakers Samsung Electronics and SK Hynix rose 1.29 per cent and 3.56 per cent, respectively, while electric vehicle battery maker LG Energy Solution added 1.11 per cent.

Traders will be monitoring the long-awaited Fed meeting, where the US central bank is expected to raise interest rates for the first time in 3 years. Traders will also closely watch the Fed for details on how it plans to end its bond-buying programme.

Chinese markets rose after Vice Premier Liu He said the government will take measures to boost the economy and also announce policies favourable to capital markets.

At home, data showed the nation's unemployment rate fell to the lowest on record in February, with jobs growth staying at a near 22-year high, due to a low base and government spending.

Investors appeared to show scant response to the government's statement that South Korea reported a record 400,741 daily Covid-19 cases for Tuesday.

Foreigners were net sellers of 133.1 billion won (S$146.6 million) worth of shares on the main board.

The won ended at 1,235.7 per dollar on the onshore settlement platform, 0.57 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,236.4, while in non-deliverable forward trading its 1-month contract was quoted at 1,236.7.

In money and debt markets, June futures on 3-year treasury bonds rose 0.07 point to 107.44.

The benchmark 10-year yield rose by 1.3 basis points to 2.772 per cent. REUTERS