South Korea stocks gain over 1.5% as market sees further US stimulus

SEOUL: Round-up of South Korean financial markets:

** South Korean shares rose as much as 1.7% on Wednesday as US Treasury Secretary nominee Janet Yellen reaffirmed her commitment to more relief measures in the world's largest economy. The won strengthened and the benchmark bond yield fell.

** The KOSPI was up 6.05 points, or 0.20%, at 3,098.71, as of 0157 GMT, after gaining as much as 1.7% in early trade. The index soared 2.6% on Tuesday, marking the best day in more than a week.

** Major heavyweights Samsung Electronics rose 0.3% and peer SK Hynix added 1.2%, while LG Chem and Hyundai Motor slid 0.4% and 1.2%, respectively.

** "Investors were seen booking profits after a sharp rebound on Tuesday," DS Investment & Securities analyst Na Jeong-hwan said, adding that profit-booking capped early gains that were boosted by Yellen's push for fiscal stimulus.

** At Yellen's confirmation hearing on Tuesday, she urged lawmakers to "act big" on the next coronavirus relief package, adding that the benefits outweigh the expenses of a higher debt burden.

** US President-elect Joe Biden, who will be sworn into office on Wednesday, last week laid out a $1.9 trillion stimulus package proposal to boost the economy and speed up the distribution of vaccines.

** The won was quoted at 1,101.6 per dollar on the onshore settlement platform, 0.12% higher than its previous close at 1,102.9.

** In offshore trading, the won was quoted at 1,100.7 per dollar, up 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,100.2.

** In money and debt markets, March futures on three-year treasury bonds rose 0.01 points to 111.59.

** The most liquid 3-year Korean treasury bond yield fell by 0.1 basis points to 0.973%.