Asia
South Korean Shares Rise Marginally on US-Iran Deal Optimism; Samsung Electronics Shares Decline Over 2%
South Korean stocks closed marginally higher on Friday, extending gains for a second straight session amid growing optimism over a potential resolution between the US and Iran.The Korea Composite Stock Price Index or Kospi edged up by 32.12 points, or 0.4%, to end at 7,847.71. The Kosdaq also increased by 55.16 points, or 5%, to close at 1,161.13.In economic news, South Korea's composite consumer sentiment index rose to 106.1 in May from 99.2 in April, according to data released by the Bank of Korea on Friday. A reading above 100 indicates an improved outlook, while a reading below 100 suggests pessimism.Sentiment toward current living standards rose two points to 93, while sentiment on the future outlook gained five points to 97.The outlook for future household income was up two points to 100, while the sentiment for future household spending also rose by two points to 110.In other economic news, newly issued household loans per borrower in South Korea were up by 990,000 won to hit 35.42 million won in the first quarter from the previous quarter, while average mortgage loans increased by 16.53 million won to 229.39 million won, the Bank of Korea said in a Friday release.Loan growth was particularly notable among borrowers in their 30s, residents of the Seoul metropolitan area, borrowers taking loans from non-bank financial institutions, and mortgage loan holders.In corporate news, Samsung Electronics (KRX:005930) struck a last-minute deal with its labor union, and as a result of the agreement, it will distribute about 40 trillion won among its 78,000 employees in the semiconductors division.Under the proposed terms, Samsung employees could receive average bonuses of about 513 million won, the news agency reported, based on its calculations using the projected 2026 operating profit.The company reported average employee pay of 158 million won last year.Under the tentative deal, which still requires labor union approval, the chipmaker will distribute 10.5% of profit as stock bonuses and an additional 1.5% in cash. The bonus program will run annually for 10 years, given that profit targets are achieved. Analysts estimate Samsung's operating profit could surge sevenfold to around 333 trillion won in 2026.Shares of Samsung Electronics fell more than 2% at market close.
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