S.Korea stocks flat as strong dollar offsets jobs data

SEOUL: Round-up of South Korean financial markets:

South Korean shares were flat in a range-bound trade on Monday, even as the U.S. jobs data signalled strong economic performance, as a firmer dollar held back foreign investors. The Korean won was also flat, while the benchmark bond yield rose.

The KOSPI was flat at 3,112.79, as of 0234 GMT.

It rose as much as 0.46pc and down 0.35pc during early session.

The U.S. labour department said on Friday that nonfarm payrolls surged by 916,000 jobs last month, the biggest gain since last August, while the dollar was poised to extend gains against major currencies on recovery optimism.

Among heavyweights, chip heavyweights Samsung Electronics and SK Hynix rose 0.12pc and 1.77pc, respectively, while battery maker LG Chem and internet giant Naver fell 1.09pc and 1.05pc, respectively.

"Foreign investors seem like they are focusing on strong dollar due to economic recovery momentum in the United States (although the earning forecasts for Korean chip heavyweights have been raised)," said DS Investment & Securities' analyst Na Jeong-hwan.

Shares of LG Electronics Inc jumped more than 2pc after the company said it will end production and sales of its loss-making smartphone division.

Foreigners were net sellers of 7.4 billion won ($6.56 million) worth of shares on the main board.

The won was quoted at 1,127.3 per dollar on the onshore settlement platform, 0.02pc higher than its previous close at 1,127.5.

In offshore trading, the won was quoted at 1,127.4 per dollar, up 0.1pc from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,127.1.

In money and debt markets, June futures on three-year treasury bonds fell 0.15 points to 110.63.

The most liquid 3-year Korean treasury bond yield rose by 4.7 basis points to 1.198pc, while the benchmark 10-year yield rose by 5.5 basis points to 2.104pc.