South Korea stocks fall as domestic infections curb recovery optimism

SEOUL: Round-up of South Korean financial markets:

South Korean shares slid on Friday as surging coronavirus infections at home continued to dampen sentiment, despite investors growing more optimistic about another US stimulus aid. The Korean won and the benchmark bond yield weakened.

The benchmark KOSPI fell 1.67 points, or 0.06%, to 2,768.76, as of 0154 GMT, after rising as high as 0.4% in early trade.

South Korea reported 1,062 new coronavirus cases on Friday, the second highest since it confirmed its first infection in January, the Korea Disease Control and Prevention Agency (KDCA) said.

As the coronavirus pandemic roared to new record highs across the United States, it lit a fire in the US Congress, where Republicans and Democrats were scrambling to pass a new round of aid after months of partisan finger-pointing and inaction.

Major heavyweights slid, with chip giants Samsung Electronics and SK Hynix declining 0.4% and 1.7%, respectively.

Foreigners were net sellers of 81.1 billion won ($73.89 million) worth of shares on the main board.

The won was quoted at 1,095.5 per dollar on the onshore settlement platform, 0.20% lower than its previous close at 1,Reuters

In offshore trading, the won was quoted at 1,098.0 per dollar, down 0.5% from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,096.5.

In money and debt markets, March futures on three-year treasury bonds was unchanged at 111.39, while the 3-month Certificate of Deposit rate was quoted at 0.66%.

The most liquid 3-year Korean treasury bond yield fell by 0.3 basis points to 0.998%, while the benchmark 10-year yield fell by 0.3 basis points to 1.731%.