Seoul: Stocks dip as global virus concerns offset domestic export boost

[SEOUL] South Korean shares ended lower on Monday as concerns over surging coronavirus cases in Europe and fading US fiscal stimulus hopes offset optimism around domestic trade and virus situations. The won gained, while the benchmark bond yield fell.

The benchmark Kospi closed down 23.01 points or 0.95 per cent at 2,389.39, snapping a 0.3 per cent gain in the previous session.

European countries from Denmark to Greece announced new restrictions on Friday to curb surging infections in some of their largest cities, while Britain was reported to be considering a new national lockdown.

South Korea's exports for the first 20 days of the month returned to growth for the first time since March, helped by higher microchip and car sales, data showed on Monday.

Schools in the capital Seoul and nearby areas resumed in-person classes for the first time in almost a month on Monday after daily infections dropped to the lowest levels since mid-August.

Heightened uncertainty over the US presidential election following the death of US Supreme Court Justice Ruth Bader Ginsburg also weighed on foreign investor sentiment, said Kiwoom Securities' analyst Seo Sang Young.

Majority of market heavyweights tumbled, with bio-pharmaceutical firm Celltrion Inc and LG Chem leading losses.

Foreigners were net sellers of 77.4 billion won (S$90.6 million) worth of shares on the main board.

The won ended trading at 1,158 per US dollar on the onshore settlement platform, 0.2 per cent higher than its previous close at 1,160.3.

In offshore trading, the won was quoted at 1,157.6 per US dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,157.7.

In money and debt markets, December futures on three-year treasury bonds rose 0.03 point to 111.81.

The most liquid three-year Korean treasury bond yield fell by 0.4 basis points to 0.904 per cent.

REUTERS