South Korean shares hit 29-month high as auto, financial stocks jump
KOSPI rises, foreigners net buyers
Korean won strengthens against dollar
South Korea benchmark bond yield falls
SEOUL, July 4 (Reuters) -Round-up of South Korean financial markets:
** South Korean shares rose on Thursday to hit their highest level in 29 months, as auto and financial stocks jumped after the government unveiled tax cut plans to encourage higher dividend payouts.
** The benchmark KOSPI .KS11 climbed 24.97 points, or 0.89%, to 2,818.98 by 0037 GMT, hitting its highest level since late January 2022.
** The Transport Equipment Index .KS42 rose 1.24%, with Hyundai Motor 005380.KS up 1.45% and sister automaker Kia Corp 000270.KS up 1.94%.
** The Finance-major Index .KS49 gained 2.24%, the Securities-minor Index .KS53 climbed 2.23%, and the Insurance Index .KS54 jumped 3.21%.
** Auto and financial stocks have been cited as those which have potential to pay more dividends to shareholders.
** The government said on Wednesday it would offer tax exemptions on corporate income for increases in capital returns to shareholders, as part of its "Corporate Value-up Programme".
** Chipmaker Samsung Electronics 005930.KS was up 1.34%, after rising more than 3% earlier in the day. Samsung said a local media report that its high-end chips passed Nvidia's NVDA.O test for use was inaccurate.
** Rival SK Hynix 000660.KS, which already supplies to Nvidia, was down 0.64%, after declining more than 4% earlier. Shares of the U.S. chipmaker rose 4.6% overnight.
** Battery maker LG Energy Solution 373220.KS climbed 1.12%, tracking a rally in U.S. electric-vehicle maker Tesla TSLA.O. Peer Samsung SDI 006400.KS added 1.91%.
** Foreigners were net buyers of shares worth 191.8 billion won ($138.63 million) on the main board.
** The won was quoted at 1,384.3 per dollar on the onshore settlement platform KRW=KFTC, 0.11% higher than its previous close at 1,385.8.
** In money and debt markets, September futures on three-year treasury bonds KTBc1 rose 0.06 point to 105.32.
** The most liquid three-year Korean treasury bond yield fell by 1.5 basis points to 3.148%, while the benchmark 10-year yield fell by 2.8 basis points to 3.251%.
($1 = 1,383.5100 won)
Reporting by Jihoon Lee; Editing by Subhranshu Sahu
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