South Korea stocks track Wall Street gains as Fed calms inflation fears

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Round-up of South Korean financial markets:

FILE PHOTO: A currency dealer wearing a mask works at a dealing room of a bank in Seoul, South Korea, January 6, 2021. REUTERS/Kim Hong-Ji** South Korean shares rose on Wednesday, tracking Wall Street gains overnight after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance that eased inflation concerns. The won held steady, while the benchmark bond yield fell.** The benchmark KOSPI rose 10.43 points, or 0.33per cent, to 3,181.75 as of 0059 GMT. The index gained 0.

** Among the heavyweights, technology giant Samsung Electronics rose 0.38per cent and peer SK Hynix rose 0.41per cent, while LG Chem fell 3.36per cent and Naver rose 1.40per cent.** Investors await the Bank of Korea's rate decision on Thursday, where it is seen keeping interest rates at record lows for the rest of 2021, as COVID-19 uncertainties and worries about financial imbalances offset signs of a broader economic recovery.** The won was quoted at 1,122.

** In offshore trading, the won was quoted at 1,121.5 per dollar, up 0.1per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,121.1. ** In money and debt markets, June futures on three-year treasury bonds rose 0.04 points to 110.99, while the 3-month Certificate of Deposit rate was quoted at 0.66per cent.

** The most liquid 3-year Korean treasury bond yield fell by 0.7 basis points to 1.136per cent, while the benchmark 10-year yield fell by 1.8 basis points to 2.111per cent.

 

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