South Korea stocks set for fifth week of gains

Round-up of South Korean financial markets:

South Korea stocks fall as rally from US-China trade talks loses steam

• South Korean shares rose on Friday and were set to log a fifth week of gains, as US data suggested the Federal Reserve is likely to cut interest rates twice this year. The won strengthened, while the benchmark bond yield fell.

• The benchmark KOSPI added 1.31 points, or 0.05%, to 2,622.67 as of 01:10 GMT. It is up 1.79% so far this week.

• Rate cut expectations in the US often drive similar optimism in South Korea’s interest rate outlook.

• Among index heavyweights, chipmaker Samsung Electronics fell 0.87%, while peer SK Hynix gained 2.74%. Battery maker LG Energy Solution slid 4.07%.

• US producer prices posted a surprise fall in April as the cost of services declined by the most since 2009, hurt by ebbing demand for air travel and hotel accommodation.

• Hyundai Motor and sister automaker Kia gained 0.47% and 0.66%, respectively. Steelmaker POSCO Holdings shed 0.8%. Drugmaker Samsung Biologics rose 0.10%.

• Of the total 933 traded issues, 305 advanced and 586 declined. ** Foreigners were net buyers of shares worth 47.8 billion won ($34.2 million).

• The won was quoted at 1,397.9 per US dollar on the onshore settlement platform, 0.01% higher than Thursday’s close of 1,398.0.

• In offshore trading, the won was quoted at 1,397.3 per dollar, down 0.1% on the day, while in non-deliverable forward trading, its one-month contract was quoted at 1,394.2.

• The KOSPI has risen 9.30% year-to-date, while the won has strengthened 5.3% against the dollar in the same period.

• In the money and debt markets, June futures on three-year treasury bonds gained 0.1 point to 107.65.

• The most liquid three-year Korean treasury bond yield fell 4.0 basis points to 2.321%, while the benchmark 10-year yield fell 4.9 basis points to 2.681%.