Seoul: Shares surge nearly 6% on global stimulus efforts

[SEOUL] South Korean shares jumped nearly 6 per cent on Wednesday, a day after they surged the most in more than 11 years, as global stimulus efforts further eased some of the pressure on non-dollar assets battered by the coronavirus pandemic. 

The Seoul stock market's main KOSPI closed up 94.43 points, or 5.87 per cent, at 1,704.40, extending gains into a second day.

The index rose 8.60 per cent in the previous session, the biggest daily jump since October 2008. Still, it has fallen 22.45 per cent so far this year.

Risk-averse sentiment towards non-dollar assets eased further as the US stimulus moved closer to passing, although the uncertainty over the coronavirus pandemic and its impact on the economy remain as risks, said Kim Young-hwan, an analyst at KB Investment & Securities.

US senators and Trump administration officials have reached an agreement on a massive economic stimulus bill to alleviate the economic impact of the coronavirus outbreak, White House official Eric Ueland said early on Wednesday.

South Korea on Wednesday said it will further loosen key capital flow rules temporarily to encourage local financial institutions to supply more dollars.

South Korea's central bank plans to inject dollars into local financial markets this week using a currency swap with the US Federal Reserve to help ease a growing dollar shortage in onshore markets, a senior bank official said.

Foreigners were net sellers of US$194.64 million worth of shares on the main board.

REUTERS