Seoul: Stocks end at 2-1/2-year high on vaccine hopes, strong exports data

[SEOUL] South Korean shares closed at their highest level in more than two-and-a-half years on Wednesday, extending their rally for an eighth straight session, following upbeat trade data and hopes of a successful coronavirus vaccine.

The Korean won closed at its strongest level since early December 2018 and the benchmark bond yield rose.

The benchmark Kospi ended up 32.74 points or 1.3 per cent at 2,485.57, its highest since May 3, 2018.

"Foreign investors were seen purchasing market heavyweights including Samsung Electronics on weak dollar... Investors will focus on the progress in vaccine development and US President-elect Biden's policies," said Hana Financial Investment analyst Lee Young-gon.

Chip giant Samsung Electronics and biopharmaceutical firm Celltrion led the gains on the benchmark, rising 1.8 per cent and 7.2 per cent each.

Foreigners gobbled up net 836.4 billion won (S$1.01 billion) worth of shares on the main board, after purchasing around net 2.5 trillion won in the past four sessions, Korea Exchange data showed.

South Korea's exports for the first 10 days of November surged 20.1 per cent on strong chip sales and solid demand from major trading partners, data showed on Wednesday.

Meanwhile, the nation's unemployment rate climbed to a three-month high in October, while the number of employed fell at the fastest pace in six months, as the resurgence in the Covid-19 cases added pressure on businesses.

The won ended at 1,110.0 per US dollar on the onshore settlement platform, up 0.5 per cent and marking the strongest close since Dec 4, 2018.

In offshore trading, the won was quoted at 1,109.1, while in non-deliverable forward trading its one-month contract was quoted at 1,109.4.

The most liquid three-year Korean treasury bond yield rose by two basis points to 0.993 per cent.

REUTERS