Key Takeaways
- South Korean shares rose 0.44% on Wednesday.
- Chipmakers Samsung Electronics and SK Hynix led the gains.
- US Federal Reserve expected to raise interest rates on Wednesday.
South Korean shares saw a modest rise on Wednesday, with the benchmark KOSPI index gaining 28.92 points, or 0.44%, to close at 6,656.18, after four consecutive sessions of losses.
The rally was primarily driven by chipmakers, with Samsung Electronics and SK Hynix leading the gains, rising 1.01% and 1.72% respectively.
Other major companies also showed mixed performance, with LG Energy Solution climbing 0.96%, while Hyundai Motor and Kia Corp saw declines of 1.63% and 0.49% respectively.
Steelmaker POSCO Holdings and drugmaker Samsung BioLogics experienced losses, dropping 1.51% and 0.78% respectively.
Foreign investors were net sellers of shares worth 1.1 trillion won ($804.80 million), reflecting cautious sentiment amid rising bond yields and the prospect of a US rate hike.
The South Korean won weakened by 0.28% to 1,368.5 per dollar, compared to its previous close at 1,364.6.
In the debt market, the most liquid three-year Korean treasury bond yield fell by 2.5 basis points to 4.075%, while the benchmark 10-year yield dropped by 3.3 basis points to 4.555%.
Elevated bond yields and the anticipated US Federal Reserve interest rate hike continued to weigh on broader risk sentiment, despite the gains in the tech sector.
