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Shares edge up as investors await Powell remarks at Jackson Hole

Published: 21 Aug. 2024, 16:30 Updated: 21 Aug. 2024, 18:58

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,701.13 points on Wednesday, up 0.17 percent, or 4.50 points, from the previous trading session. The Kosdaq dropped 0.96 percent, or 7.57 points, to 779.87. [YONHAP]

Shares ended higher for the second straight session Wednesday as investors awaited U.S. payroll data and clues regarding the direction of U.S. rate policy from this week's Jackson Hole symposium. The local currency fell against the dollar.

The Kospi closed at 2,701.13 points, up 0.17 percent, or 4.50 points, from the previous trading session. The Kosdaq dropped 0.96 percent, or 7.57 points, to 779.87.

Trade volume was moderate at 406 million shares worth 9.18 trillion won ($6.87 billion), with losers outnumbering gainers 448 to 407.

Foreigners bought a net 30.5 billion won worth of shares, while individuals offloaded a net 11.4 billion won. Institutions sold a net 26.7 billion won.

Investors remained cautious as they waited for U.S. Federal Reserve Chairman Jerome Powell's remarks on the direction of U.S. rate cuts this week.

“Although Powell's remarks at the Jackson Hole meeting are expected to be in line with market expectations, the U.S. nonfarm payroll data could become a variable,” said Kim Ji-won, a researcher at KB Securities.

In Seoul, Samsung Electronics lost 0.76 percent to reach 78,300 won, and SK hynix fell 3.56 percent to 192,600 won.

Online operator Naver slid 0.13 percent to 156,400 won, while mobile messenger operator Kakao rose 0.27 percent to 36,600 won.

KB Financial Group dropped 3.00 percent to 87,200 won, and Shinhan Financial Group rose 0.68 percent to 58,800 won.

Steelmakers closed higher, with Posco Holdings rising 2.32 percent to 330,500 won and nonferrous metal smelter Korea Zinc rising 0.19 percent to 533,000 won.

Chemical shares also closed bullish, with LG Chem moving up 2.23 percent to 298,000 won and SK Chemicals rising 0.79 percent to 5,1000 won. Oil refiner SK Innovation climbed 1.37 percent to 103,800 won.

The local currency was trading at 1,336.6 won against the dollar as of 3:30 p.m., up 3.4 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 0.3 basis points to 2.941 percent, and the return on the benchmark U.S. 10-year bonds lost 6.6 basis points to reach 3.807 percent.

BY YOON SEUNG-JIN, YONHAP [[email protected]]