South Korea stocks start year at record high on chip, auto boost

SEOUL: Round-up of South Korean financial markets:

South Korean shares touched a record high as it began trading in 2021, driven by major heavyweights, as more investors bet on a swifter economic recovery.

The won hit its strongest level since mid-June 2018, while the benchmark bond yield fell.

The KOSPI soared 58.72 points, or 2.04%, to 2,932.19 by 0245 GMT, set for a sixth straight gain, after ending 2020 up 30.8%.

South Korea's exports expanded at their fastest pace in 26 months in December, on robust chip demand and improved global demand, providing additional signals that the recovery is on track despite resurgences in the novel coronavirus.

Chip giants Samsung Electronics and SK Hynix surged as much as 4.2% and 5.9% to their record highs.

Shares of Hyundai Motor Co, the nation's biggest carmaker, surged to a near 4-year high, while its affiliates also jumped on hopes for electric vehicle (EV) boost this year.

Foreigners were net sellers of 35.9 billion won ($33.19 million) worth of shares on the main board.

The won was quoted at 1,080.7 per dollar on the onshore settlement platform, 0.52% higher than its previous close, and the strongest since June 12, 2018.

In offshore trading, the won was quoted at 1,081.4 per dollar, up 0.3% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,080.5.

In money and debt markets, March futures on three-year treasury bonds rose 0.02 points to 111.49.

The most liquid 3-year Korean treasury bond yield rose by 0.2 basis points to 0.972%.