South Korean shares rise; domestic political developments in focus

SEOUL: Round-up of South Korean financial markets:

South Korean stocks slip as US jobs data curbs rate-cut bets

• South Korean shares rose on Wednesday as investors’ focus remained on the local political developments, with investigating authorities seeking to arrest impeached President Yoon Suk Yeol.

• The benchmark KOSPI gained 9.21 points, or 0.37%, to 2,506.61 as of 0121 GMT, after rising more than 1% earlier in the day.

• Authorities attempted to enter Yoon’s residence this morning in a fresh bid to arrest him over insurrection accusations related to his Dec. 3, 2024, martial law declaration.

• On Jan. 3, when investigators first attempted to arrest Yoon, the KOSPI jumped 1.8%. The attempt failed, however.

• South Korea’s jobless rate jumped to the highest in 3-1/2 years in December 2024, as political turmoil stoked economic uncertainty and dampened sentiment.

• The Bank of Korea is expected to lower interest rates by 25 basis points for the third straight meeting on Thursday, a month earlier than previously anticipated, although a weak local currency will likely pose a headache to policymakers.

• Samsung Electronics rose 0.19% and peer SK Hynix gained 2.10%, tracking the Philadelphia Semiconductor Index’s 0.5% rise overnight.

• Battery maker LG Energy Solution slid 1.12% after main customer Tesla shed 1.7%. Peers Samsung SDI and SK Innovation fell 2.1% and 1.1%, respectively. Battery materials makers also weakened.

• Of the total 941 traded issues, 399 advanced and 469 declined.

• Foreigners net bought shares worth 74.1 billion won ($50.7 million).

• The won was quoted at 1,461.1 per US dollar on the onshore settlement platform, 0.06% higher than Tuesday’s close of 1,462.0.

• The most liquid three-year Korean treasury bond yield rose by 2.6 bps to 2.663%, while the benchmark 10-year yield rose by 1.5 bps to 2.849%.