South Korean shares track Wall Street’s record peak on soft US inflation data

SEOUL: Round-up of South Korean financial markets:

• South Korean shares climbed on Wednesday, tracking Wall Street’s surge to record highs after soft US inflation data reinforced expectations for a September rate cut. The won weakened, while the benchmark bond yield edged higher.

• The benchmark KOSPI was up 18.30 points, or 0.57%, at 3,208.21, as of 0233 GMT.

• Among index heavyweights, chipmaker Samsung Electronics rose nearly 1%, while peer SK Hynix gained 2.79%. Battery maker LG Energy Solution climbed 0.26%.

• World shares hit record highs on Tuesday after US consumer price data fuelled expectations of an impending Federal Reserve interest rate cut in September, and a trade war truce between Washington and Beijing also buoyed sentiment.

• Shares of Hyundai Motor and sister automaker Kia Corp were up 0.94% and 0.88%, respectively. Steelmaker POSCO Holdings shed 0.82%, while drugmaker Samsung BioLogics rose 1.08%.

• In political developments that could influence investor sentiment, South Korea’s former first lady Kim Keon Hee was arrested after a court late on Tuesday issued a warrant following accusations of graft that she denies.

• Of the total 932 traded issues, 330 shares advanced, while 548 declined.

• Foreigners were net buyers of shares worth 256.0 billion won.

• The won was quoted at 1,385.2 per dollar on the onshore settlement platform, 0.06% lower than its previous close at 1,384.4.

• The KOSPI index has risen 33.70% so far this year.

• The won has strengthened 6.3% against the dollar so far this year.

• In money and debt markets, September futures on three-year treasury bonds gained 0.04 point to 107.40.

• The most liquid three-year Korean treasury bond yield fell by 0.9 basis points to 2.421%, while the benchmark 10-year yield rose by 0.1 basis points to 2.808%. Reuters