South Korea stocks extend gains to sixth session on further US rate cut hopes

SEOUL: Round-up of South Korean financial markets:

South Korean shares extended gains for a sixth straight session on Tuesday, on hopes of further rate cuts by the U.S. Federal Reserve and as China unveiled stimulus measures. The won was little changed, while the benchmark bond yield fell.

The benchmark KOSPI closed up 29.26 points, or 1.12%, at 2,631.27, while the won was quoted at 1,334.9 per U.S. dollar on the onshore settlement platform, 0.01% lower than its previous close at 1,334.8.

Among index heavyweights, chipmaker Samsung rose 0.96% and peer SK Hynix gained 0.93%, while battery maker LG Energy Solution climbed 4.03%.

China’s central bank will cut banks’ reserve requirement ratio by 50 basis points and further reduce key interest rates to support a recovery in prices, its governor Pan Gongsheng said.

The Fed said on Monday their large half-point rate cut last week was meant to try to sustain what they see as an emerging and healthy balance in the economy, with inflation headed towards the Fed’s target rate and unemployment near the level consistent with stable prices.

South Korean stocks close higher with key US inflation data in focus

Hyundai added 1.6% and sister automaker Kia gained 0.58%, while search engine Naver and instant messenger Kakao were up 0.78% and 1.69%, respectively.

Of the total 934 traded issues, 608 shares advanced, while 265 declined.

Foreigners were net sellers of shares worth 362 billion won on the main board.

The KOSPI has fallen 0.90% so far this year, but has gained 3.2% in the previous 30 trading sessions.

The won has lost 3.5% against the dollar so far this year.

In money and debt markets, December futures on three-year treasury bonds rose 0.05 point to 106.28.

The most liquid three-year Korean treasury bond yield fell by 1.6 basis points to 2.848%, while the benchmark 10-year yield rose by 0.4 basis points to 3.018%.