Seoul: Stocks drop most in 2 months as domestic virus cases surge

[SEOUL] South Korean shares fell the most in two months on Tuesday as worries about a surge in domestic coronavirus cases eclipsed optimism from an overnight tech-fuelled rally on Wall Street. 

The benchmark Kospi closed down 59.25 points, or 2.46 per cent, at 2,348.24. That marked the sharpest decline since June 15.

South Korea reported a three-digit increase in novel coronavirus cases for a fifth consecutive day, as authorities scrambled to trace hundreds of members of a church congregation, and the military locked down bases to counter the spread of the virus. The country reported a total 15,761 infections and 306 deaths.

"The spike of Covid-19 cases during the holiday weekend dented the sentiment ... there are worries that the virus spread could worsen and would delay the economic recovery," said Lee Young-gon, an analyst at Hana Financial Investment.

Foreigners were net buyers of US$59.95 million worth of shares on the main board.

REUTERS