South Korean shares log two-week closing high on US-Iran deal
- The benchmark KOSPI closed up 180.62 points, or 2.11%, at 8,726.60, its highest closing level since June 2
SEOUL: Round-up of South Korean financial markets:
South Korean shares rose more than 2% on Tuesday to notch their highest close in two weeks, tracking an overnight rally on Wall Street on the US-Iran peace deal.
The benchmark KOSPI closed up 180.62 points, or 2.11%, at 8,726.60, its highest closing level since June 2.
On Monday, it rose 5.2%. Wall Street rallied on Monday, with the Nasdaq climbing 3% and the Dow marking a record-high close after the United States and Iran struck a preliminary agreement to end the Middle East war and reopen the Strait of Hormuz, leading to an easing of inflation fears as crude oil prices dropped.
“Market sentiment is more sensitive to positive news than negative news,” Seo Sang-young, an analyst at Mirae Asset Securities, said, adding that there was muted reaction to Japan’s rate hike.
The Bank of Japan raised interest rates to a 31-year high on Tuesday, a widely expected move that signalled its focus on countering inflation risks from the Middle East conflict.
Among index heavyweights, chipmaker Samsung Electronics rose 1.78%, while peer SK Hynix gained 4.11%. Battery maker LG Energy Solution slid 2.38%.
Hyundai Motor and sister automaker Kia Corp were down 1.08% and up 1.61%, respectively. Steelmaker POSCO Holdings shed 1.27%, while drugmaker Samsung BioLogics rose 0.08%. Of the total 917 traded issues, 519 shares advanced, while 360 declined.
Foreigners were net buyers of shares worth 1.4 trillion won ($925.25 million).
The won was quoted at 1,511.6 per dollar on the onshore settlement platform, 0.24% higher than its previous close at 1,515.2.
The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 3.723%, while the benchmark 10-year yield fell by 7.2 basis points to 4.123%.‑Reuters
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