Seoul: Shares gains on upbeat news around virus treatment; log weekly loss

[SEOUL] South Korean shares rose on Wednesday in holiday-thinned trading, as sentiment was lifted by the country approving a coronavirus vaccine and as US drugmaker Eli Lilly's antibody to treat Covid-19 gets emergency use authorisation.

The benchmark Kospi rose 15.91 points or 0.52 per cent to 3,100.58 as of 6.32am GMT. For the week, the index declined 0.6 per cent.

The Korean won strengthened, while the benchmark bond yield rose on Wednesday. South Korean markets will be closed on Thursday and Friday for a public holiday.

South Korea said it would grant its first approval for a coronavirus vaccine to AstraZeneca, and will allow it to be used in people 65 years or older.

Meanwhile, Eli Lilly's combination antibody therapy to fight Covid-19 has been granted emergency use authorisation by the US Food and Drug Administration.

Eli Lilly getting grants for emergency use lifted investor sentiment among foreigners, said Seo Sang-young, an analyst at Kiwoom Securities.

Gains in markets were capped by local data showing the unemployment rate soared to a 21-year high in January, while the number of people employed fell at the sharpest pace in more than two decades.

Samsung Electronics fell 1.33 per cent, while Kia Motors rose 1.77 per cent.

Foreigners were net buyers of 753.5 billion won (S$903.4 million) worth of shares on the main board.

The won was quoted at 1,107.0 per dollar on the onshore settlement platform, 0.87 per cent higher than its previous close of 1,116.6.

In offshore trading, the won was quoted at 1,107.5 per dollar, up 0.3 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,107.3.

The Kospi has risen 7.9 per cent this year and has gained 9.9 per cent in the previous 30 trading sessions.

REUTERS