Seoul: Stocks end higher as US stocks gain, virus cases fall

[SEOUL] South Korean shares closed higher on Tuesday, ahead of a three-day Chuseok holiday, as they tracked gains on Wall Street, with lower domestic Covid-19 infections aiding sentiment.

Financial markets will be closed on Wednesday to Friday for a public holiday, and will resume trade at normal hours on Monday, Oct 5.

The Kospi closed up 19.81 points, or 0.86 per cent, to 2,327.89. For the month, it gained 0.1 per cent, and 10.4 per cent for the quarter. The index had added 20.2 per cent in the previous quarter.

While Wall Street closed higher on Monday led by buying in beaten-down stocks, South Korea reported 38 new Covid-19 cases, lower than 50 a day earlier. But the government has appealed for strict social distancing ahead of the major holiday.

"Trading was thin ahead of the Chuseok holiday ... There are important events such as US presidential debate, South Korea's September trade data and global PMIs during the holiday season," said Lee Kyoung-min, Daishin Securities' analyst.

Foreigners were net sellers of US$63.11 million worth of shares on the main board, extending the sell-off to a seventh straight day, the longest since mid-April.

REUTERS