Seoul: Stocks post biggest gain in nearly two months

[SEOUL] South Korean shares posted their biggest daily rise in nearly two months on Monday, tracking Wall Street's record closing highs, though gains were capped by spiking Covid-19 cases and caution ahead of US inflation data due this week.

The won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended 28.52 points or 0.89 per cent higher at 3,246.47, logging the sharpest gain since May 18 and rebounding from a 1.07 per cent decline on Friday.

Among heavyweights, technology giant Samsung Electronics rose 0.38 per cent, while peer SK Hynix added 0.42 per cent. Battery maker LG Chem and internet giant Naver gained 0.72 per cent and 1.92 per cent, respectively.

Foreigners were net buyers of 35.9 billion won (S$42.3 million) worth of shares on the main board.

South Korea's toughest anti-Covid-19 curbs took effect in Seoul to quell its worst-ever outbreak, with the country reporting 1,100 new cases for Sunday.

The outlook for US inflation and the speed of the Federal Reserve's future policy tightening are back in focus ahead of Tuesday's consumer price data and Fed Chairman Jerome Powell's testimony from Wednesday.

Meanwhile, South Korean exports for the first 10 days of July rose 14.1 per cent year-on-year, according to customs agency data, which slowed from a 40.8 per cent surge in the June 1-10 period.

The won ended at 1,147.0 per dollar on the onshore settlement platform, 0.18 per cent higher than its previous close at 1,149.1.

In offshore trading, the won was quoted at 1,145.7, while in non-deliverable forward trading its one-month contract was quoted at 1,146.5.

In money and debt markets, September futures on three-year treasury bonds rose 0.02 point to 110.34.

The benchmark 10-year yield fell by 0.8 basis point to 2.024 per cent.

REUTERS