Seoul: Stocks, won rally as inflation and China concerns ease
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SOUTH Korean shares rose more than 1 per cent on Monday (May 30) to a near 4-week high as concerns eased over global inflation and China’s Covid-19 lockdown. The won saw its best day in more than 2 months, while the benchmark bond yield inched down.
The benchmark Kospi ended up 31.61 points, or 1.2 per cent, at 2,669.66, the highest close since May 4.
US consumer spending rose more than expected in April and the increase in inflation slowed, while China said it would cancel many restrictions in its commercial hub from June.
Some worries about inflation, supply chain disruptions and the global economy eased, boosting risky assets, said Mirae Asset Securities’ analyst Seo Sang-young, adding the jump was likely to be limited to the short term as an economic slowdown was inevitable.
Among the heavyweights, technology giant Samsung Electronics rose 1.8 per cent and peer SK Hynix gained 0.94 per cent, while battery maker LG Energy Solution jumped 2.09 per cent.
LG surged 9.64 per cent after the company announced last Friday a plan to repurchase 500 billion won (S$551.8 million) worth of its own stock for shareholder value.
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Foreigners were net buyers of 351.2 billion won worth of shares on the main board.
The won was last quoted at 1,238.6 per dollar on the onshore settlement platform, 1.42 per cent higher than its previous close.
The currency posted the biggest daily rise since Mar 17 and the highest close since Apr 20.
In offshore trading, the won was quoted at 1,238.1 per dollar, up 1.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,237.9.
In money and debt markets, June futures on 3-year treasury bonds rose 0.07 point to 105.77 in late afternoon trade.
The most liquid 3-year Korean treasury bond yield fell by 2.6 basis points to 2.92 per cent, while the benchmark 10-year yield fell by 1.5 basis points to 3.196 per cent. REUTERS
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