South Korean financial markets experience a surge, with shares hitting a 29-month high driven by Samsung Electronics' expected profit increase. Auto and financial sectors also see gains due to dividend policy measures. Bank of Korea suggests structural reforms for addressing high living costs. Foreign investors show interest with net share purchases. Market yields decline notably.
Round-up of South Korean financial markets:** hit their highest level on Thursday in more than 29 months as chipmaker jumped ahead of its second-quarter earnings, while auto and financial stocks firmed on policy measures to encourage higher .
** The benchmark closed up 30.93 points, or 1.11%, at 2,824.94, its highest level since Jan. 21, 2022.
** Samsung Electronics rose 3.42%, a day ahead of its preliminary earnings announcement for the second quarter. The is expected to post a 13-fold increase in profit on rising demand for artificial intelligence technology.
** , which supplies to , fell 2.54%, despite the U.S. chipmaker's 4.6% jump overnight.
** There was a local media report that Samsung's high-end chips passed Nvidia's test for use, but Samsung said the report was inaccurate.
** "If Samsung gets to supply high bandwidth memory chips to Nvidia, that will bring down SK Hynix from its status of exclusive supplier," said Park Kwang-nam, an analyst at Mirae Asset Securities.
** Among sub-indexes, the finance-major index gained 1.80%, the securities-minor index climbed 3.21% and the insurance index jumped 2.21%, while the transport equipment index rose 1.20%.
** Auto and financial stocks have been cited as those which have the potential to pay more dividends to shareholders, which the government seeks to boost with tax exemptions.
** South Korea should try to address the country's high cost of living through structural reforms instead of relying on the central bank to fight it, a official said.
** Foreigners were net buyers of shares worth 321.6 billion won ($232.90 million).
** The won was quoted at 1,380.4 per dollar on the onshore settlement platform, 0.39% higher than its previous close at 1,385.8.
** The most liquid three-year Korean treasury bond yield fell by 3.8 basis points to 3.125%, while the benchmark 10-year yield fell by 4.9 bps to 3.230%. ($1 = 1,380.8500 won)
Source: Stocks-Markets-Economic Times