South Korean shares erase gains on caution ahead of US inflation report

Kakao

15/01/2025 07:11

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      KOSPI ends marginally lower
    

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      Korean won steady against dollar
    

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      South Korea benchmark bond yield rises
    

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      For the midday report, please click  urn:newsml:reuters.com:*:nL1N3OB01D
    

  
       SEOUL, Jan 15 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korean shares erased early gains to end flat on
Wednesday as focus shifted to the U.S. inflation report and the
arrest of President Yoon Suk Yeol. 
    ** The benchmark KOSPI  .KS11  closed down 0.59 points, or
0.02%, at 2,496.81.
    ** The KOSPI rose more than 1% in early trade but erased the
gains after authorities successfully arrested Yoon for
interrogation. 
    ** "The KOSPI and the overall Asian market weakened in
afternoon trade on caution ahead of U.S. CPI," said Lee
Kyoung-min, an analyst at Daishin Securities.
    ** "Domestic stock and foreign exchange markets showed muted
reaction to the successful arrest of Yoon Suk Yeol as it will
take time, until the ruling by Constitutional Court on
impeachment, for political uncertainty to be resolved," Lee
said.     
    ** U.S. producer prices rose less than expected in December,
while consumer prices likely rose 2.9% in December, faster than
a 2.7% year-on-year rise in November, according to a Reuters
poll. The consumer price index report is due later in the day.
    ** South Korea's jobless rate jumped to the highest in 3-1/2
years in December as political turmoil stoked economic
uncertainty and dampened sentiment.
    ** The Bank of Korea is expected to lower rates by 25 basis
points (bps) for the third straight meeting on Thursday,
although a weak local currency will likely pose a headache to
policymakers.    
    ** Battery maker LG Energy Solution  373220.KS  slid 1.8%
after its main customer Tesla  TSLA.O  shed 1.7%. Peers Samsung
SDI  006400.KS  and SK Innovation  096770.KS  fell 2.1% and
1.7%, respectively, while battery material makers also weakened.
    ** Foreigners were net buyers of shares worth 48.5 billion
won ($33.2 million).
    ** The won was quoted 0.05% higher at 1,461.2 per dollar on
the onshore settlement platform  KRW=KFTC .
    ** The most liquid three-year Korean treasury bond yield
 KR3YT=RR  rose 2.6 bps to 2.663%, while the benchmark 10-year
yield  KR10YT=RR  rose 2.1 bps to 2.855%.

($1 = 1,461.4700 won)

 (Reporting by Jihoon Lee)
 ((jihoon.lee@thomsonreuters.com;))