South Korean shares set to snap 3-week decline on tariff negotiation hopes

SEOUL: Round-up of South Korean financial markets:

South Korean shares slightly higher as central bank holds rates

• South Korean shares rose on Friday and were set to snap a three-week losing run, while investors focussed on developments around US tariff negotiations.

• The benchmark KOSPI added 6.89 points, or 0.28%, to 2,477.30 as of 0246 GMT, setting the index on track for a weekly gain of 1.9%.

• US President Donald Trump said on Thursday he expects to make a trade deal with China, while his administration started talks with Japan this week and plans to hold meetings with South Korea next week.

• South Korea’s government proposed a supplementary 12.2 trillion won ($8.61 billion) budget on Friday to counter the heightening risks to economic growth in the face of a global trade war and domestic political uncertainty.

• The Bank of Korea signalled it would cut rates in May and kept the door wide open to further monetary easing this year.

• Automakers, seen as one of the most vulnerable to US tariffs, were the biggest gainers. Hyundai Motor gained 1.60% and sister automaker Kia added 1.88%.

• E-commerce firms also advanced, biopharmaceutical and battery manufacturers declined, while chipmakers were mixed.

• Foreigners were net sellers of shares worth 111 billion won.

• The won was quoted at 1,421.4 per dollar on the onshore settlement platform, 0.34% lower than Thursday’s close at 1,416.6.

• In the money and debt markets, June futures on three-year treasury bonds rose 0.11 point to 107.60.

• The most liquid three-year Korean treasury bond yield fell 2.9 basis points to 2.355%, while the benchmark 10-year yield lost 1.7 basis points to 2.612%.