Seoul: Stocks gain for fourth day on tech boost, strong trade data

[SEOUL] South Korean shares ended higher on Wednesday on tech boost and strong exports data, though gains were capped on concerns over rising coronavirus cases and caution ahead of US jobs data later this week. The won and the benchmark bond yield edged up.

The Kospi closed up 7.75 points or 0.24 per cent at 3,207.02, extending gains to a fourth session, after a sharp 1.75 per cent gain on Tuesday.

Heavyweights tech giant Samsung Electronics rose 0.13 per cent and peer SK Hynix added 1.41 per cent, while internet giant Naver jumped 1.37 per cent.

South Korea's exports growth accelerated in August, towed by solid demand for memory chips, petrochemicals and other major items.

Offsetting recovery hopes, the country reported 2,025 new coronavirus cases for Tuesday, much more than 1,372 reported a day earlier.

Investors now await a key US jobs report for August, due on Friday, that could shape how soon the Federal Reserve begins to withdraw its support of the economy when it begins to taper bond buying.

South Korea's factory activity grew at a slower pace in August as output contracted for the first time in 12 months, while data on Tuesday showed US consumer confidence fell to a six-month low on soaring Covid-19 infections and rising inflation.

Foreigners were net buyers of 119 billion won (S$138.3 million) worth of shares on the main board.

The won ended at 1,157.2 per dollar on the onshore settlement platform, 0.2 per cent higher than its previous close at 1,159.5.

In offshore trading, the won was quoted at 1,157.4 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,157.7.

In money and debt markets, September futures on three-year treasury bonds fell 0.05 point to 110.48.

The benchmark 10-year yield rose by 3 basis points to 1.942 per cent.

REUTERS