The Korea Herald


Seoul shares jump over 1.7% on US inflation, strong data

By Yonhap

Published : June 3, 2024 - 15:58

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An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap) An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

South Korean stocks rallied by more than 1.7 percent Monday as investors' sentiment was boosted by favorable economic data that could lead to a rate cut in the United States. The local currency rose sharply against the US dollar.

The benchmark Korea Composite Stock Price Index rose 46 points, or 1.74 percent, to close at 2,682.52, ending in positive territory for the second consecutive session.

Trade volume was heavy at 768.6 million shares worth 13.8 trillion won ($10 billion), with gainers far outpacing losers 632 to 249.

Foreigners and institutions led the sharp gains, purchasing a net 182.1 billion won and 233 billion won, respectively, while individuals dumped a net 418.7 billion won.

The rally came with fresh data over the weekend. The US personal consumption expenditures price index, a key indicator for inflation, rose about as expected in April, and South Korea's May exports rose for eight straight months led by strong overseas sales of semiconductors.

Most shares finished higher across the board.

Samsung Electronics, the world's largest mobile and memory chip manufacturer, jumped 2.99 percent to 75,700 won and its chipmaking rival SK hynix rose 2.64 percent to 194,200 won.

Carmakers were strong as industry leaders Hyundai Motor vaulted 4.74 percent to 265,000 won and its sister Kia advanced 2.55 percent to 120,700 won.

Leading oil refinery SK Innovation soared 6.3 percent to 106,300 won and Samsung Heavy Industries jumped 4.8 percent to 9,600 won after the Seoul government's announcement on a potentially massive oil and gas reserve off the east coast.

SK, a holding company of SK Group, added 1.48 percent to 178,800 won, extending its winning streak to three sessions in a row after a court ruling on South Korea's most expensive divorce suit between SK Chairman Chey Tae-won and his estranged wife Roh So-young last Thursday.

Hybe, the K-pop agency behind BTS, climbed 0.25 percent to 200,500 won as BTS member Jin is about to be discharged from military duty next week.

The local currency ended at 1,376.1 won against the greenback, up 8.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.8 basis points to 3.434 percent, and the return on the benchmark five-year government bonds dropped 3.6 basis points to 3.466 percent. (Yonhap)