Seoul: Stocks track Wall Street higher; investors focus on US inflation data

[SEOUL] South Korean shares ended higher on Wednesday (Feb 9), tracking an overnight tech rally on Wall Street, though gains were capped as investors remained cautious ahead of US inflation data. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi closed up 22.38 points or 0.81 per cent at 2,768.85.

Among the heavyweights, technology giant Samsung Electronics and peer SK Hynix rose 1.63 per cent and 0.80 per cent, respectively, while Naver added 1.24 per cent.

Wall Street ended sharply higher on Tuesday, lifted by Apple and Microsoft, while the benchmark 10-year US Treasury yield hit its highest since November 2019 ahead of a key inflation reading and Fed's tightening expectations.

US inflation data, due out on Thursday, is considered crucial for the Federal Reserve's tapering timeline, with markets now pricing in a 1-in-3 chance that the central bank might hike rates by a full 50 basis points in March.

South Korea reported a record high 49,567 new daily Covid-19 cases as the Omicron variant drives a wave of infections, the government said on Wednesday, but new deaths remain low at 21.

Foreigners were net buyers of 238.7 billion won (S$268.1 million) worth of shares on the main board.

The won closed at 1,196.5 per dollar on the onshore settlement platform, 0.10 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,196.5 per dollar, unchanged from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,197.1.

In money and debt markets, March futures on 3-year treasury bonds rose 0.13 point to 107.66.

The most liquid 3-year Korean treasury bond yield fell by 2.8 basis points to 2.275 per cent, while the benchmark 10-year yield fell by 5.1 basis points to 2.683 per cent. REUTERS