Seoul: Stocks snap five-day rally, but mark best week in seven

[SEOUL] South Korean shares posted their best weekly gain in seven, although they snapped a five-session rally on Friday as upbeat US jobs data fanned fears of higher inflation. Both the won and the benchmark bond yield fell.

The Kospi settled down 7.35 points or 0.23 per cent at 3,240.08. For the week, the benchmark index gained 1.61 per cent, its sharpest since the five days to April 16.

Wall Street ended lower on Thursday, as a better-than-expected US unemployment report and private payrolls numbers for May fanned fears of inflation and worries that the Federal Reserve may tighten monetary policy.

Among heavyweights, chip giants Samsung Electronics and SK Hynix fell 0.72 per cent and 0.39 per cent, respectively, while battery maker LG Chem and internet giant Naver slid 0.37 per cent and 1.38 per cent, respectively.

Foreigners were net buyers of 161.7 billion won (S$192.7 million) worth of shares on the main board.

Investors now await US CPI data for May due next week.

South Korea's finance minister said the government was considering drafting the second supplementary budget of this year.

The won ended at 1,116.5 per dollar on the onshore settlement platform, 0.26 per cent lower than its previous close at 1,113.6.

It edged down 0.09 per cent on a weekly basis, snapping two weeks of gains.

In offshore trading, the won was quoted at 1,116.4, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,116.0.

In money and debt markets, June futures on three-year treasury bonds fell 0.08 point to 110.74.

The benchmark 10-year yield fell by 2.4 basis points to 2.171 per cent.

REUTERS