Seoul: Stocks bounce back as government announces stimulus budget; virus cases fall

[SEOUL] South Korean shares closed up 1 per cent on Tuesday after the government unveiled aggressive spending measures to blunt the economic damage from the Covid-19 pandemic and as manufacturing activity improved in China.

The benchmark Kospi rose 23.38 points, or 1.01 per cent, to 2,349.55.

Foreigners were net sellers of 209.7 billion won (S$240.5 million) worth of shares on the main board.

South Korea said it was ready to boost policy support if the rate of cases worsen and unveiled plans to boost total spending by 8.5 per cent to a record 555.8 trillion won next year.

Also helping sentiment, the Korea Centres for Disease Control and Prevention reported 235 new coronavirus cases as of midnight Monday, dropping slightly for five straight days.

Elsewhere, manufacturing activity in China expanded at the fastest clip in nearly a decade in August, as factories ramped up output to meet rebounding demand, a private survey showed.

The Kospi has risen 6.91 per cent this year.

The trading volume during the session in the Kospi index was 1,060.49 million shares.

REUTERS