South Korean shares climb to two-week high on foreign buying

SEOUL: Round-up of South Korean financial markets:

South Korean shares rose on Monday as heavyweights gained on continued inflows of foreign money, while investors were cautious about China’s real estate issues.

The benchmark KOSPI closed up 22.09 points, or 0.89%, at 2,500.65, its highest since Jan. 15.

The KOSPI, cut some of its gains at the end of the session, after rising as much as 1.55%.

“Heavyweights, including Samsung Electronics which rose on foreign buying, lifted the benchmark index higher,” said Seo Sang-young, an analyst at Mirae Asset Securities.

“News on China’s Evergrande had little immediate impact on the domestic market, but for the time being, developments of China issues will matter the most,” Seo said.

A Hong Kong court ordered the liquidation of property giant China Evergrande Group, a move likely to send ripples through China’s crumbling financial markets as policymakers scramble to contain a deepening crisis.

Among index heavyweights, chipmaker Samsung Electronics rose 1.36%, while battery makers Samusng SDI and SK Innovation jumped 5.13% and 3.89%, respectively.

Hyundai Motor and sister automaker Kia Corp gained 4.43% and 5.83%, respectively, while biopharmaceutical manufacturer Samsung Biologics added 3.49%.

Of the total 936 traded issues, 527 shares advanced, while 362 declined.

Foreigners were net buyers of shares worth 547.3 billion won ($409.88 million) for the day on the main board, extending their buying streak to a seventh straight session.

The won ended onshore trade at 1,335.7 per dollar, 0.04% higher than its previous close at 1,336.3.

In money and debt markets, March futures on three-year treasury bonds fell 0.14 point to 104.82.

The most liquid three-year Korean treasury bond yield rose by 4.2 basis points to 3.304%, while the benchmark 10-year yield rose by 5.5 basis points to 3.439%.