Seoul: Stocks rebound on US tech rally, new virus stimulus

[SEOUL] South Korean shares rebounded on Thursday, tracking a tech-led rally in Wall Street, while the government's new stimulus package added to investor sentiment. The won gained, while the benchmark bond yield fell.

The benchmark Kospi closed up 20.67 points or 0.87 per cent at 2,396.48. Market heavyweight Samsung Electronics jumped as much as 2.74 per cent to lead the gains.

Wall Street's main indexes ended higher on Wednesday to snap a three-session losing streak as investors jumped back in to take advantage of the pullback in technology-related stocks, a day after the Nasdaq confirmed correction territory.

Shares of Kakao Games surged 30 per cent on debut, after it debuted on the junior Kosdaq at 48,000 won (S$55.31), double the IPO price, valuing the company at 3.5 trillion won.

South Korea is preparing the fourth supplementary budget of this year of around US$6.6 billion to aid struggling small businesses facing mass closures amid unprecedented social distancing restrictions to curb a resurgence of the coronavirus.

The country reported 155 fresh coronavirus cases as of Wednesday midnight, according to an official statement, bringing the national tally to 21,743 and 346 deaths.

Foreigners were net buyers of 380.4 billion won worth of shares on the main board.

The won ended trading at 1,184.9 per US dollar on the onshore settlement platform, 0.35 per cent higher than its previous close at 1,189.1.

In offshore trading, the won was quoted at 1,184.4 per US dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,184.9.

In money and debt markets, September futures on three-year treasury bonds fell 0.01 point to 111.87.

The most liquid three-year Korean treasury bond yield fell by 0.5 basis point to 0.912 per cent, while the benchmark 10-year yield fell by 0.3 basis point to 1.515 per cent.

REUTERS