South Korean shares rise to near 11-month high on post-election optimism

SEOUL: Round-up of South Korean financial markets:

• South Korean shares climbed on Thursday to their highest levels in nearly 11 months, extending a post-election rally, driven by steady foreign capital inflows on expectations for prompt economic stimulus and structural market reforms.

• The won strengthened near an eight-month high, while the benchmark bond yield fell.

• The benchmark KOSPI was up 49.66 points, or 1.79%, at 2,820.50, as of 0116 GMT, touching its highest level since July 18, 2024.

• The index closed 2.7% higher on Wednesday after Lee Jae-myung officially took office as president.

• Lee has pledged to bring corporate reform measures to boost the domestic stock market, raise investment in artificial intelligence, and revive an economy reeling from slowing growth with stimulus policies.

• Foreigners were net buyers of shares worth 412.5 billion won ($303.90 million) on Thursday, after buying more than 1 trillion won in the previous session, the biggest in nearly 10 months.

• South Korea’s economy in the first quarter contracted by 0.2% from the previous quarter, according to revised data, confirming the initial estimate and signalling continued economic challenges.

• Among index heavyweights, chipmaker Samsung Electronics rose 2.77%, while peer SK Hynix gained 5.63%. Battery maker LG Energy Solution climbed 1.56%.

• Shares of Hyundai Motor and sister automaker Kia Corp were up 3.28% and 3.46%, respectively. Steelmaker POSCO Holdings added 4.89% while drugmaker Samsung BioLogics rose 0.29%.

• Of the total 934 traded issues, 602 shares advanced, while 290 declined.

• The won was quoted at 1,356.3 per dollar on the onshore settlement platform, 0.58% higher than its previous close and the highest since October 15, 2024.

• In money and debt markets, June futures on three-year treasury bonds gained 0.08 point to 107.31.

• The most liquid three-year Korean treasury bond yield fell by 1.6 basis points to 2.398%, while the benchmark 10-year yield fell 3.9 basis points to 2.857%.