South Korean shares erase early gains as traders eye Trump’s first day

SEOUL: Round-up of South Korean financial markets:

South Korean shares rise; domestic political developments in focus

• South Korean shares erased early gains to end lower on Monday, as traders took a cautious approach ahead of US President-elect Donald Trump’s inauguration.

• The benchmark KOSPI closed down 3.50 points, or 0.14%, at 2,520.05.

• The KOSPI rose as much as 0.5% in early trade, tracking Wall Street’s gains on Friday, but erased the gains near the session close.

• Trump, who will be sworn in as president of the United States later on Monday, has pledged to sign a flurry of executive orders on subjects ranging from border security to oil and gas production on his first day in office.

• “Of course, tariff and immigration policies will be most important. Still, his tariff policies are expected to be less than a disaster, leaving room for negotiations and being gradual,” said Huh Jae-hwan, an analyst at Eugene Investment Securities.

• South Korea pledged a record amount of financing support for exporters to mitigate any negative impact from changes in US trade policies.

• Among index heavyweights, chipmakers and automakers fell, but battery makers tracked Tesla’s 3.1% jump on Friday.

• Of the total 944 traded issues, 389 shares advanced, while 491 declined.

• Foreigners were net sellers of shares worth 414.6 billion won ($285.69 million).

• The won was quoted at 1,451.7 per dollar on the onshore settlement platform, 0.47% higher than its previous close at 1,458.5.

• In money and debt markets, March futures on three-year treasury bonds fell 0.04 point to 106.81.

• The most liquid three-year Korean treasury bond yield rose by 1.7 basis points to 2.604%, while the benchmark 10-year yield rose by 7.0 basis points to 2.864%.