Seoul: Shares bounce back on strong trade data; post sixth weekly jump

[SEOUL] South Korean shares rebounded on Friday to post their longest streak of weekly gains since November 2019, as strong exports data and optimism over Covid-19 vaccines eclipsed concerns over a delay in US stimulus and a third wave of infections at home. The won slid, while the benchmark bond yield rose.

The benchmark Kospi closed up 23.60 points or 0.86 per cent at 2,770.06 after shedding 0.3 per cent on Thursday. For the week, the index gained 1.41 per cent in its sixth straight weekly jump.

South Korea's exports during the first 10 days of December jumped 26.9 per cent from a year earlier, official data showed, boosted by micro chips and improving global demand.

A US Food and Drug Administration advisory panel on Thursday voted overwhelmingly to endorse emergency use of Pfizer's coronavirus vaccine. Britain began vaccine inoculations this week.

South Korea will mobilise military forces in the capital Seoul to help frontline health workers deal with a surge in coronavirus, with 689 new cases reported on Friday, and as the death toll and number of patients in critical care rose.

Foreigners were net sellers of 179.3 billion won (S$219.3 million) worth of shares on the main board.

The won ended at 1,090.3 per US dollar on the onshore settlement platform, 0.24 per cent lower than its previous close at 1,087.7. The won edged down 0.75 per cent on a weekly basis, snapping five straight weeks of gains.

In offshore trading, the won was quoted at 1,089.7, while in non-deliverable forward trading its one-month contract was quoted at 1,089.4.

In money and debt markets, December futures on three-year treasury bonds fell 0.03 point to 111.69.

The most liquid three-year Korean treasury bond yield rose by 0.4 basis point to 0.978 per cent, while the benchmark 10-year yield rose by 0.4 basis point to 1.658 per cent.

REUTERS