South Korean Stocks Rebound After Jackson Hole Shock; automakers jump

* KOSPI increases by 1%, foreigners are net sellers

* The Korean won strengthens against the US dollar

* South Korea’s benchmark bond yield fell slightly

* For the midday report, please click

SEOUL, Aug 30 (Reuters) – Overview of South Korean financial markets:

** South Korean stocks closed 1% higher on Tuesday, led by automakers, with the benchmark recouping nearly half of the previous session’s losses when concerns over high U.S. interest rates during a longer period triggered a sell-off.

** The Korean won strengthened, while the benchmark bond yield fell.

**The benchmark KOSPI ended up 24.04 points, or 0.99%, at 2,450.93. The index had fallen 2.18% on Monday, the largest in two months, to the lowest close since July 27.

**The market reversed losses as some easing in volatility was seen in global financial markets, said Daishin Securities analyst Lee Kyoung-min.

** The Governor of the Bank of Korea said on Tuesday that the central bank’s monetary policy would not change after Federal Reserve Chairman Jerome Powell’s speech.

** Separately, South Korea’s financial regulator has launched an inspection of short selling of stocks by major brokerages and branches of foreign firms as part of efforts to strengthen oversight of such transactions.

**Among heavyweights, tech giant Samsung Electronics rose 0.34% and peer SK Hynix gained 0.76%, while automakers Hyundai Motor and Kia Corp jumped 3.71% and 3.35%, respectively, leading the gains.

**LG Energy Solution ended up 1.31%, after rising 4.03% to its highest level in more than six months, as the electric vehicle battery maker released its joint plan with Honda Motor for a new battery factory in the United States.

**Foreigners were net sellers of shares worth 33.4 billion won ($24.79 million) on the main board.

** The won closed 0.27% higher on the onshore settlement platform, after weakening in the previous session to the highest since March 2020 and hitting the lowest level since April 2009.

** In money and debt markets, September three-year Treasury bill futures rose 0.11 points to 103.57 by late afternoon trading.

** The most liquid Korean 3-year treasury yield fell 0.6 basis points to 3.643%, while the benchmark 10-year yield fell 0.9 basis points to 3.706%, down slightly from their two-month highs reached the previous day. ($1 = 1,347.1600 won) (Reporting by Jihoon Lee; Editing by Uttaresh.V)

About Frances R. Smith

Check Also

Moke Californian EV order banks open, pricing starts at $41,900

The Moke International Electric Moke Californian debuted a few weeks ago without any pricing information. …