South Korean stock market trades flat after strong gains on Tuesday

South Korean market: South Korean shares maintained a steady stance on Wednesday following a robust 2 per cent surge in the preceding session. The market saw a mix of movements, with battery manufacturers and biopharmaceutical firms offsetting declines in chip and auto stocks.

The benchmark KOSPI index hovered at 2,734.41 as of 0114 GMT, registering a marginal increase of just 0.05 points, or less than 0.01 per cent.

Tuesday witnessed a notable 2.2 per cent upswing in the KOSPI, marking its most significant single-day gain since March 21. This surge followed a broader rally catalyzsed by last week's softer-than-anticipated US employment data.

Minneapolis Fed President Neel Kashkari suggested on Tuesday that the US Federal Reserve might need to maintain interest rates at their current levels for an "extended period," potentially throughout the year, in response to stagnant inflation, partly bolstered by robust housing market conditions.

In the realm of index heavyweights, chipmakers and automakers experienced declines, while battery manufacturers and biopharmaceutical firms saw gains. However, most of these movements remained within the less-than-1 per cent range.

Of the total 931 traded issues, 408 shares advanced, while 429 declined.

Foreign investors were net sellers of shares amounting to 41.8 billion won ($30.63 million) on the main board on Wednesday.

The South Korean won weakened, quoted at 1,364.9 per dollar on the onshore settlement platform, marking a 0.35 per cent decrease from its previous close at 1,360.1.

In money and debt markets, June futures on three-year treasury bonds remained unchanged at 104.33. The most liquid three-year Korean treasury bond yield experienced a minor uptick of 0.2 basis points to 3.451 per cent, while the benchmark 10-year yield increased by 0.5 basis points to 3.539 per cent.

(With Reuters inputs)