South Korean shares post biggest daily gain in a month on chip, battery rally

SEOUL: Round-up of South Korean financial markets:

South Korean shares posted their biggest daily rise in a month on Wednesday, as chip and battery makers rallied on demand hopes. The won firmed, while the benchmark bond yield rose.

The benchmark KOSPI closed up 52.73 points, or 2.01%, at 2,675.75, logging its biggest rise since March 21.

Chipmaker Samsung Electronics rose 4.11% and peer SK Hynix gained 5.15%, after U.S. chipmaker Texas Instruments flagged stronger-than-expected revenue for the second quarter.

Battery maker LG Energy Solution climbed 4.05%, after U.S. electric-vehicle maker Tesla said it would introduce new models under a faster timeline. Peers Samsung SDI and SK Innovation climbed 3.69% and 1.48%, respectively.

“The market is fluctuating on earnings-based trading, with earnings announcements of U.S. big tech companies to follow,” said Cho Jun-kee, an analyst at SK Securities.

South Korean shares end lower as battery makers drag

South Korea’s major chip and auto companies are also scheduled to report their first-quarter results later this week.

Of the total 931 traded issues, 612 shares advanced, while 273 declined.

Foreigners were net buyers of shares worth 491.3 billion won ($358.65 million).

The won ended onshore trade at 1,369.2 per dollar, 0.66% higher than its previous close at 1,378.3.

In money and debt markets, June futures on three-year treasury bonds fell 0.04 point to 104.09.

South Korea is considering easing real-time reporting requirements for investors in the nation’s $1.8 trillion bond market as it seeks inclusion into FTSE Russell’s global bond index, Reuters reported.

The most liquid three-year Korean treasury bond yield rose by 1.7 basis points to 3.506%, while the benchmark 10-year yield rose by 1.6 basis points to 3.640%.