Stocks close slightly up amid worries over monetary tightening

Finance

Published: 28 Feb. 2023, 17:09

Stocks close slightly up amid worries over monetary tightening

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,412.85 points on Tuesday, up 10.21 points, or 0.42 percent, from the previous trading day. [NEWS1]

Stocks closed moderately higher Tuesday amid worries the U.S. Federal Reserve's monetary tightening may last for longer than expected. The local currency ended almost flat against the dollar.

The Kospi rose 10.21 points, or 0.42 percent, to 2,412.85. Trading volume was moderate at 518.1 million shares worth 8.9 trillion won ($6.72 billion) with gainers outnumbering decliners 504 to 362.

"Investors have become quite immune to the negative factors that have weighed on investor sentiment in relation to the U.S. monetary policy," Han Ji-young, an analyst at Kiwoom Securities, said.

"Uncertainties will, of course, persist in the lead up to the Fed's next policy meeting in March, but that has been reflected in the markets," Han said.

U.S. stocks rebounded Monday as investors hunted for bargains from last week's losses.

Data showed new orders for capital goods in the world's largest economy increased more than previously forecast in January. Pending home sales also rose last month by the most in nearly three years, pointing to a strong economy.

In Seoul, shares closed mixed, with large-cap financials and techs advancing while major steelmakers and shipbuilders wound up in the red.

Samsung Electronics gained 0.17 percent to 60,600 won. LG Energy Solution shot up 2.95 percent to 523,000 won.

KB Financial, a banking group, rose 1.38 percent to 51,300 won, and online-based Kakao Bank jumped 4.72 percent to 26,650 won.

Steelmaker Posco Holdings slid 0.31 percent to 318,000 won, and shipyard Hyundai Heavy Industries lost 2.3 percent to 106,400 won.

The local currency ended at 1,322.60 won against the U.S. dollar, up 0.4 won from Monday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds rose 12.2 basis points to 3.795 percent, and the return on the benchmark 10-year government bonds shed 3.5 basis points to 3.916 percent.

Domestic stock markets will be closed Wednesday for the March 1 Independence Movement holiday marking a 1919 uprising against Japan's colonial rule.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]