South Korean shares fall on second virus wave worries, rising tensions with North Korea

SEOUL: Round-up of South Korean financial markets: South Korean shares ended lower on Thursday, as the market sentiment was dented by worries about a rise in coronavirus infections in the United States and China, along with the country's tensions with North Korea.

The Korean won strengthened, while the benchmark bond yield fell.

The Seoul stock market's main KOSPI closed down 7.57 points, or 0.35pc, at 2,133.48.

New coronavirus infections hit record highs in six US states on Tuesday, marking a rising tide of cases for a second consecutive week as most states moved forward with reopening their economies, while China's capital Beijing ramped up efforts to contain a coronavirus outbreak that has fanned fears of wider contagion.

South Korea's chief nuclear negotiator will visit officials in Washington later in the day amid flaring tensions with North Korea after Pyongyang blew up an inter-Korean liaison office and threatened military action.

Economic recovery hopes were calmed down by worries of a second coronavirus wave, said Samsung Securities' analyst Seo Jung-hun, adding that investors seemed to be locking in profits with no major event coming up for emerging markets.

Foreigners were net sellers of 192.6 billion won ($159.27 million) worth of shares on the main board.

The won closed trading 0.49pc higher at 1,208.0 per dollar on the onshore settlement platform.

In offshore trading, the won was quoted up 0.5pc at 1,209.3 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,208.4.

In money and debt markets, September futures on three-year treasury bonds rose 0.16 points to 112.02.

The most liquid 3-year Korean treasury bond yield fell by 3.2 basis points to 0.842pc, while the benchmark 10-year yield fell by 4.0 basis points to 1.370pc.