South Korean shares climb on US stimulus talks, drop in local virus cases

SEOUL: Round-up of South Korean financial markets:

South Korean shares gained on Monday as optimism over some progress in US stimulus talks and a drop in domestic coronavirus cases lifted sentiment. The won strengthened, while the benchmark bond yield fell.

By 0632 GMT, the benchmark KOSPI was up 5.21 points, or 0.22pc, at 2,346.74.

The market was buoyed by hopes of a US fiscal package, but weaker-than-expected Chinese economic growth data capped gains, DS Investment & Securities analyst Na Jeong-hwan said.

Index heavyweights SK Hynix and POSCO firmed 1.64pc and 3.22pc, respectively.

US House Speaker Nancy Pelosi said she was optimistic legislation on a coronavirus relief package could be pushed through before Election Day.

South Korea reported 76 new coronavirus cases as of Sunday midnight, extending declines after logging triple-digit increases last week.

Foreigners were net buyers of 43.4 billion won worth of shares on the main board.

The won was quoted at 1,142.0 per dollar on the onshore settlement platform, 0.47pc higher than its previous close at 1,147.4.

In offshore trading, the won was quoted at 1,141.2 per dollar, up 0.1pc from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,141.0.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.22pc.

The KOSPI has risen 6.78pc so far this year, and gained 0.7pc in the previous 30 trading sessions.

The trading volume during the session in the KOSPI index was 911.37 million shares. Of the total traded issues of 905, the number of advancing shares was 440.

The won has gained 1.3pc against the dollar so far in 2020.

The most liquid 3-year Korean treasury bond yield rose by 0.9 basis points to 0.892pc, while the benchmark 10-year yield fell by 4.8 basis points to 1.441pc.