S.Korea shares end higher on upbeat U.S. job data; strong dollar caps gains

SEOUL: Round-up of South Korean financial markets:

South Korean shares closed up on Monday, as strong U.S. jobs data underpinned recovery momentum, but gains were capped as a firmer dollar held back foreign investors. The won ended flat, while the benchmark bond yield rose.

The KOSPI ended up 8.03 points, or 0.26pc, at 3,120.83. It rose as much as 0.46pc and down 0.35pc in 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 the heavyweights, technology giant Samsung Electronics rose 0.71pc and peer SK Hynix jumped 1.42pc, while battery maker LG Chem fell 1.33pc.

Shares of LG Electronics Inc fell 2.52pc, after the company said it will wind down its loss-making mobile division after failing to find a buyer, a move that is set to make it the first major smartphone brand to completely withdraw from the market.

Foreigners were net buyers of 158.4 billion won ($140.48 million) worth of shares on the main board.

The won ended at 1,127.7 per dollar on the onshore settlement platform, 0.02pc lower than its previous close at 1,127.5.

In offshore trading, the won was quoted at 1,127.5 per dollar, up 0.1pc from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,127.2.

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

The most liquid 3-year Korean treasury bond yield rose by 4.5 basis points to 1.196pc, while the benchmark 10-year yield rose by 3.7 basis points to 2.086pc.