South Korea’s won rose the most in more than a week and government bonds advanced after a shipbuilder received an order and U.S. payrolls data eased concern the Federal Reserve will accelerate its stimulus cuts.
Samsung Heavy Industries Co. won a 621 billion won ($587 million) contract for five container ships to be delivered by September 2016, according to a Jan. 9 regulatory filing. Local companies may get more than $70 billion in overseas plant orders this year, compared with $63.7 billion in 2013, the trade ministry said on Jan. 7. An increase of 74,000 in December payrolls lagged the 197,000 advance estimated by economists, U.S. Labor Department figures showed Jan. 10.
“Positive sentiment from ship orders is supporting the won’s strength,” said Jeon Seung Ji, a currency analyst at Samsung Futures Inc. in Seoul. “The dollar is weak globally after poor U.S. jobs data.”
The won appreciated 0.5 percent to 1,056.55 per dollar as of 10:24 a.m. in Seoul, the most since Jan. 2, data compiled by Bloomberg show. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, fell 48 basis points, or 0.48 percentage point, to 6.23 percent.
Government bonds advanced the most since Dec. 17. The yield on the 3.25 percent notes due September 2018 slid five basis points to 3.22 percent, according to Korea Exchange prices.
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