Seoul: Stocks reverse early gains on stricter virus curbs, profit-taking

[SEOUL] South Korean shares closed lower on Tuesday, reversing earlier gains as the country tightened coronavirus-related curbs and investors booked profits after a rally in the benchmark index. The won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended 3.88 points or 0.15 per cent lower at 2,539.15, after rising as much as 0.51 per cent earlier in the session.

The index hit a 33-month high on Monday, its tenth session of gains out of eleven.

South Korea decided to strengthen social distancing rules for the greater Seoul area amid spikes in coronavirus cases, as it reported 230 new infections as of Monday midnight.

The stricter new curbs hit optimism fuelled by Moderna Inc saying its experimental vaccine is 94.5 per cent effective in preventing Covid-19 based on interim data from a late-stage trial.

Chip giant Samsung Electronics slipped 0.9 per cent after hitting a record high, while its peer SK Hynix extended gains to a sixth session.

Shares of Asiana Airlines closed higher for a ninth session, hitting a one-year peak after it announced consolidation plans with Korean Air Lines.

Foreigners were net buyers for a ninth straight session, the longest streak since September 2019, purchasing 359.3 billion won (S$436.2 million) worth of shares on the main board.

They have picked up a total 4.75 trillion won worth of shares over the past eight sessions.

The won ended at 1,106.6 per US dollar on the onshore settlement platform, 0.24 per cent higher than its previous close at 1,109.3.

The most liquid three-year Korean treasury bond yield fell by 0.9 basis point to 0.962 per cent, while the benchmark 10-year yield fell by 0.3 basis point to 1.621 per cent.

REUTERS