Samsung Electronics drives South Korean shares higher; KOSPI up

South Korean markets: South Korean shares concluded higher on Tuesday, led by a surge in heavyweight chipmaker Samsung Electronics ahead of its preliminary earnings release for the first quarter, offsetting losses in other sectors of the market.

The benchmark KOSPI index closed up 5.30 points, or 0.19 per cent, at 2,753.16. Meanwhile, the South Korean won weakened against the dollar, and the benchmark bond yield rose.

South Korea's consumer prices in March rose by 3.1 per cent from the same period a year ago, meeting market expectations and matching the previous month's pace. However, inflation is anticipated to slow in the upcoming months.

In a move to boost the value of Seoul-listed companies, South Korea's financial regulator announced additional incentives for firms participating in the government's corporate reform program, primarily through higher dividend payouts.

Analyst Park Kwang-nam from Mirae Asset Securities noted, "Samsung Electronics rose on rising NAND prices and optimism around artificial intelligence, with skewed demand affecting other sectors."

Samsung Electronics shares surged by 3.66 per cent and reached their highest level since April 2021. Its peer SK Hynix also recorded a gain of 0.43 per cent.

Despite the overall positive sentiment, most other index heavyweights experienced declines, with 667 shares declining out of a total of 931 traded issues.

Hanwha Aerospace witnessed a notable surge of 15.31 per cent following reports that the defense firm is contemplating spinning off a unit.

Foreign investors remained net buyers on the main board, purchasing shares worth 1.01 trillion won ($746.56 million).

The South Korean won concluded onshore trade at 1,352.1 per dollar, marking a 0.20 per cent decrease from its previous close.

In the money and debt markets, June futures on three-year treasury bonds fell by 0.14 points to 104.72. The yield on the most liquid three-year Korean treasury bond rose by 4.8 basis points to 3.335 per cent, while the benchmark 10-year yield increased by 5.4 basis points to 3.430 per cent.

(With Reuters inputs.)