Seoul: Stocks end at over 6-week high on vaccine optimism

[SEOUL] South Korean shares closed at their highest level in more than 6 weeks on Thursday (Dec 9), as test data showing that the Pfizer-BioNTech Covid-19 vaccine offered some protection against the Omicron coronavirus variant boosted risk appetite.

The Korean won ended at a 1-month high, while the benchmark bond yield also rose.

The benchmark Kospi closed up 27.77 points or 0.93 per cent at 3,029.57, its highest since Oct 26 and rallying for a seventh straight session.

Chip giants Samsung Electronics and SK Hynix gained 1.03 per cent and 2.92 per cent, respectively, while platform company Naver added 1.14 per cent.

Pfizer and BioNTech said on Wednesday (Dec 8) their 3-shot course of the Covid-19 vaccine was able to neutralise the Omicron variant in a laboratory test and they could deliver an upgraded vaccine in March 2022 if needed.

At home, South Korea reported 7,102 new coronavirus cases for Wednesday following a record 7,175 cases a day earlier. Some 22 new Omicron cases were found, bringing up the tally to 60 so far.

An imminent US inflation data puts the interest rates outlook firmly back in focus, while the Federal Reserve is expected to provide indications on timing of rate hikes at its meeting next week.

Foreigners were net sellers of 146.5 billion won (S$170 million) worth of shares.

The won ended at 1,174.5 per dollar on the onshore settlement platform, the highest close since Nov 3 and 0.12 per cent higher than the previous session.

In offshore trading, the won was quoted at 1,174.4, while in non-deliverable forward trading its 1-month contract was quoted at 1,174.1.

In money and debt markets, December futures on 3-year treasury bonds rose 0.07 point to 109.16.

The benchmark 10-year yield rose by 0.3 basis point to 2.189 per cent.

REUTERS