Seoul: Stocks gain as country stops short of toughest virus rules

[SEOUL] South Korean shares ended higher on Friday, following gains in Wall Street and as the country's extension of the current social distancing measures, instead of a toughening, eased worries about further economic fallout from the coronavirus. Both the won and the benchmark bond yield rose.

The benchmark Kospi closed up 9.35 points or 0.40 per cent at 2,353.80. For the week, the index rose 2.14 per cent, snapping a 4.27 per cent fall in the previous week.

South Korean authorities stopped short of shifting the country up to the highest level of social distancing measures on Friday, but instead extended the current Phase Two, despite recording another triple-digit increase in daily new coronavirus cases.

The finance minister said on Thursday the government will consider drafting its fourth supplementary budget of this year should the economic fallout from the pandemic significantly worsen.

A Reuters poll showed the nation's exports likely shrunk for a sixth straight month in August, as effects from fewer working days outweighed a gradual recovery in global demand.

Full month data is due on Sept 1.

Meanwhile, local financial markets shrugged off news that Japan's Prime Minister Shinzo Abe is set to resign, but shares of some consumer brands that compete with Japanese manufacturers surged shortly after.

Foreigners were net sellers of 229.4 billion won (S$264 million) worth of shares on the main board.

The won ended trading at 1,184.3 per US dollar on the onshore settlement platform, 0.06 per cent higher than its previous close, while it gained 0.17 per cent on a weekly basis.

In offshore trading, the won was quoted at 1,183.9 per US dollar, up 0.3 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,183.9.

In money and debt markets, September futures on three-year treasury bonds fell 0.13 point to 111.94.

The most liquid three-year Korean treasury bond yield rose by 4.1 basis points to 0.893 per cent, while the benchmark 10-year yield rose by 6.9 basis points to 1.490 per cent.

REUTERS