South Korean shares rebound as chipmakers rally on shareholder returns

Samsung Electronics Co

Yesterday 07:54

KOSPI rises, foreigners net buyers
Korean won weakens against dollar
South Korea benchmark bond yield falls
For the midday report, please click nL1N44H01Q
SEOUL, Aug 20 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares closed nearly 6% higher on Thursday, rebounding from steep losses in the previous session, as chipmakers rallied on shareholder return measures and lower U.S. Treasury yields. 
** The benchmark KOSPI .KS11 closed up 381.40 points, or 5.89%, at 6,852.57. The index closed 5.8% lower on Wednesday. 
** The U.S. Treasury floated support measures for long-duration bonds, stepping in to staunch, at least temporarily, an upward march in yields that had unnerved global investors.    
** Shares of SK Hynix 000660.KS gained 12.73% on Thursday after the chipmaker said it will buy back and cancel treasury shares and allocate more than 50% of free cash flow generated between 2025 and 2027 to boost shareholder returns.
** Peer Samsung Electronics 005930.KS rose 9.49%, after a media report that it is also set to announce a new shareholder return policy later this month.
** "Investor sentiment stabilised on a sharp drop in treasury bond yields, with shareholder return policies also having an impact," said Seo Sang-young, an analyst at Mirae Asset Securities. 
** Among other index heavyweights, battery maker LG Energy Solution 373220.KS climbed 0.14%, while Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were up 0.85% and down 1.43%, respectively. 
** Steelmaker POSCO Holdings 005490.KS added 0.47%, while drugmaker Samsung BioLogics 207940.KS rose 1.94%.
** Of the total 905 traded issues, 521 shares advanced, while 338 declined.
** Foreigners were net buyers of shares worth 1.7 trillion won ($1.22 billion). 
** The won was quoted at 1,392.6 per dollar on the onshore settlement platform KRW=KFTC, 0.25% lower than its previous close at 1,389.1.
** In money and debt markets, September futures on three-year treasury bonds KTBc1 lost 0.03 point to 103.27.
** The most liquid three-year Korean treasury bond yield KR3YT=RR rose 2.1 basis points to 3.807%, while the benchmark 10-year yield KR10YT=RR fell 9.5 basis points to 4.318%.

($1 = 1,391.9000 won)

 (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)
 ((jihoon.lee@thomsonreuters.com;))