Seoul: Stocks rebound, won hits 3-week high

SOUTH Korean shares rebounded on Wednesday (May 25), tracking gains in US stock futures during Asian hours and bargain hunting a day after sharp losses. The Korean won hit a 3-week high, while the benchmark bond yield fell.

The benchmark Kospi ended up 11.35 points, or 0.44 per cent, at 2,617.22. The index had tumbled 1.57 per cent in the previous session.

The local stock market still traded shaky with no clear direction amid an anxious mood, said Eugene Investment and Securities’ analyst Huh Jae-hwan.

South Korea’s central bank is likely to increase its benchmark rate at a second consecutive meeting on Thursday to combat inflation running at more than double its target, a Reuters poll showed.

North Korea fired 3 missiles, including 1 thought to be an intercontinental ballistic missile on Wednesday, but market reaction was largely muted.

Among the heavyweights, technology giant Samsung Electronics fell 0.15 per cent and peer SK Hynix lost 0.46 per cent, while battery maker LG Energy Solution dropped 2.74 per cent.

Another battery maker Samsung SDI gained 0.51 per cent after announcing a more than US$2.5 billion investment plan to build a joint venture battery plant with Stellantis.

Foreigners were net sellers of 157.4 billion won (S$171.1 million) worth of shares on the main board.

The won was last quoted at 1,264.6 per dollar on the onshore settlement platform - 0.13 per cent higher than its previous close at 1,266.2 - after hitting a 3-week high of 1260.3.

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In offshore trading, the won was quoted at 1,264.7 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,264.5.

In money and debt markets, June futures on 3-year treasury bonds rose 0.08 point to 105.75 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 3.6 basis points to 2.931 per cent, while the benchmark 10-year yield fell by 4.3 basis points to 3.173 per cent. REUTERS