South Korean shares end higher as Samsung strike worries ease

SEOUL: Round-up of South Korean financial markets: 

South Korean shares erased early losses to end higher on Monday, as chipmaker Samsung Electronics jumped on a court decision regarding a planned labour strike.

The benchmark KOSPI closed up 22.86 points, or 0.31%, at 7,516.04. Earlier in the session, it fell as much as 4.68%, triggering a “sidecar” trading curb. Samsung Electronics rose 3.88%, erasing early losses of more than 3%.

The company and its labour union started talks on Monday in a last-ditch bid to avert the biggest strike in the tech giant’s history.

A South Korean court on Monday partially granted Samsung’s request for an injunction, ordering the union to ensure any strike did not disrupt production. Peer chipmaker SK Hynix gained 1.15%.

“The semiconductor sector strengthened on relief around Samsung Electronics’ strike. There will be earnings releases by Nvidia as well, which can boost sentiment,” said Park Kwang-nam, an analyst at Mirae Asset Securities. Most other index heavyweights fell. Battery maker LG Energy Solution slid 2.16%, while Hyundai Motor and sister automaker Kia Corp were down 5.29% and 3.27%, respectively.

Steelmaker POSCO Holdings shed 0.96%, while drugmaker Samsung BioLogics fell 2.33%. Of the total 909 traded issues, 203 shares advanced, while 688 declined.

Foreigners were net sellers of shares worth 3.6 trillion won ($2.40 billion).

The won was quoted at 1,500.3 per dollar on the onshore settlement platform, 0.19% lower than its previous close at 1,497.5. In money and debt markets, June futures on three-year treasury bonds gained 0.07 point to 103.20.

The most liquid three-year Korean treasury bond yield was flat at 3.752%, while the benchmark 10-year yield rose by 4.2 basis points to 4.214%.‑Reuters