South Korean shares gain over 1% on US-China trade optimism

SEOUL: Round-up of South Korean financial markets:

• South Korean shares rose more than 1% on Monday, led by chip and auto makers on progress in trade talks between China and the United States.

• The benchmark KOSPI closed up 30.06 points, or 1.17%, at 2,607.33, its highest since March 26.

• The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said the sides had reached “important consensus” and agreed to launch another new economic dialogue forum.

• “Risk appetite firmed on easing tensions between the United States and China, which had weighed on global stock markets,” said Lee Kyoung-min, an analyst at Daishin Securities.

• The US is scheduled to have a meeting with South Korea later this week on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Trade Ministers’ meeting.

• Among index heavyweights, chipmaker Samsung Electronics rose 5.11%, while peer SK Hynix gained 2.58%. Battery maker LG Energy Solution climbed 1.10%.

• Hyundai Motor and sister automaker Kia Corp were up 3.11% and 3.47%, respectively. Steelmaker POSCO Holdings added 1.74%.

• Drugmaker Samsung Biologics fell 4.71% and peer Celltrion dropped 3.92%, after US President Donald Trump said he would sign an executive order to cut prescription prices.

• Of the total 935 traded issues, 661 shares advanced, while 240 declined.

• Foreigners were net sellers of shares worth 7.5 billion won ($5.4 million).

• The won was quoted at 1,402.4 per dollar on the onshore settlement platform, 0.19% lower than its previous close at 1,399.8.

• The most liquid three-year Korean treasury bond yield fell by 0.2 basis point to 2.333%, while the benchmark 10-year yield rose 1.9 basis points to 2.689%.