South Korean shares gain over 1% on US-China trade optimism
- The benchmark KOSPI closed up 30.06 points, or 1.17%, at 2,607.33
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%.