Seoul: Shares fall on surging domestic Covid-19 cases

[SEOUL] South Korean shares slid on Monday as worries about the worsening coronavirus situation at home eclipsed hopes for a vaccine-fuelled economic recovery. The won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed down 7.86 points or 0.28 per cent at 2,762.20, after rising as high as 0.46 per cent in early trade.

South Korea ordered schools to close from Tuesday in the capital Seoul and surrounding areas as it battles its worst outbreak of coronavirus since the pandemic began, surpassing the previous peak in February.

That offset hopes of a swifter vaccine roll-out and economic recovery after first shipments of Covid-19 vaccine in the United States left on trucks and planes early on Sunday.

Foreigners were net sellers of 360.2 billion won (S$439.9 million) worth of shares on the main board.

The won ended at 1,091.8 per US dollar on the onshore settlement platform, 0.14 per cent lower than its previous close at 1,090.3.

Meanwhile, President Moon Jae-in on Monday called for steps to help exporters hit by the won currency's strength versus the dollar in a rare comment about the foreign exchange market.

In offshore trading, the won was quoted at 1,091.7, while in non-deliverable forward trading its one-month contract was quoted at 1,091.3.

In money and debt markets, December futures on three-year treasury bonds fell 0.01 point to 111.69.

The most liquid three-year Korean treasury bond yield rose by 0.4 basis point to 0.984 per cent, while the benchmark 10-year yield rose by 0.2 basis point to 1.665 per cent.

REUTERS