Seoul: Shares jump on Wall Street rally, upbeat trade data

[SEOUL] South Korean shares closed higher on Tuesday as trading resumed after a long weekend, with a new stimulus plan, upbeat export data and a Wall Street rally overnight lifting investor sentiment. The won inched lower, while the benchmark bond yield fell.

South Korean financial markets were closed on Monday for a public holiday.

The benchmark Kospi closed up 30.92 points or 1.03 per cent at 3,043.87, after rising as much as 2.77 per cent.

Among the heavyweights, technology giant Samsung Electronics rose 1.33 per cent and peer SK Hynix added 2.12 per cent, while battery makers LG Chem and Samsung SDI gained 7.22 per cent and 1.48 per cent, respectively.

US stocks surged overnight, with the S&P 500 posting its best day in nearly nine months, as investors took lower US bond yields in stride on optimism over the US$1.9 trillion coronavirus relief bill and distribution of Johnson & Johnson's newly authorised Covid-19 vaccine.

South Korea's exports expanded for a fourth straight month in February on continued growth in memory chip and car sales.

Meanwhile, the country unveiled a 15 trillion won (S$17.76 billion) extra budget to boost support for small businesses and safeguard jobs as the resurgent coronavirus forces the government to retain social distancing curbs.

Foreigners were net buyers of 212.6 billion won worth of shares on the main board.

The won was quoted at 1,124.0 per dollar on the onshore settlement platform, 0.04 per cent lower than its previous close at 1,123.5.

In offshore trading, the won was quoted at 1,123.9 per dollar, down 0.9 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,123.9.

The most liquid three-year Korean treasury bond yield fell by 0.3 basis point to 1.017 per cent.

REUTERS