South Korean shares rise after Fed chair remarks, battery stocks rally

SEOUL: Round-up of South Korean financial markets:

South Korean shares rose on Thursday, rebounding from two consecutive sessions of losses, driven by gains in battery makers and bolstered by comments from U.S. Federal Reserve Chair Jerome Powell hinting at potential rate cuts in the coming months.

The benchmark KOSPI closed up 6.13 points, or 0.23%, at 2,647.62.

Powell said on Wednesday that rate cuts were still likely in the coming months, contingent upon further evidence of declining inflation.

“Although his remarks set a favourable footing for the local market, most index heavyweights, except battery makers, cut gains during the session,” said Lee Kyoung-min, an analyst at Daishin Securities.

South Korean shares end lower after government’s corporate reform plan

South Korea’s finance minister on Thursday urged local banks to actively support the ongoing reform of the foreign exchange market, underscoring its importance for the government’s “corporate value-up programme” aimed at boosting the value of Seoul-listed companies.

Battery maker LG Energy Solution climbed 3.23%, while peer Samsung SDI surged 13.03%. Additionally, SK Innovation also advanced 2.68%.

Of the total 933 traded issues, 299 shares advanced, while 593 declined.

Foreigners were net sellers of shares worth 308.2 billion won ($231.7 million) on the main board.

The won ended onshore trade at 1,330.9 per dollar, 0.27% higher than its previous close at 1,334.5.

In money and debt markets, March futures on three-year treasury bonds was unchanged at 104.71.

The most liquid three-year Korean treasury bond yield fell by 0.6 basis point (bp) to 3.320%, while the benchmark 10-year yield rose by 1.5 bps to 3.396%.