Seoul: Stocks rise on US stimulus hopes; won hits over 17-month closing high

[SEOUL] South Korean shares closed higher on Thursday, extending gains into a seventh session on renewed hopes for some US stimulus spending. The won posted its highest close in more than 17 months, while the benchmark bond yield also rose.

The benchmark Kospi ended up 5.02 points or 0.21 per cent at 2,391.96, adding about 2.8 per cent for the week.

Local financial markets will be closed on Friday for a public holiday.

Chip giant Samsung Electronics settled 0.3 per cent lower, after rising as much as 1.3 per cent earlier on forecast third-quarter profit likely jumped 58 per cent to a two-year high.

"Kospi extended its rally tracking US stocks futures' gains, while foreign investors increased their net purchase in electric and electronics shares," said Cape Investment & Securities analyst Han Ji-young.

South Korea's central bank said it had agreed to renew a currency swap agreement with China, adding details including the extension period and size would be disclosed later.

Foreigners were net buyers of 756.1 billion won (S$886.5 million) worth of shares on the main board.

The won ended trading at 1,153.3 per US dollar on the onshore settlement platform, 0.42 per cent higher than its previous close at 1,158.2, and marking its strongest close since April 24, 2019.

In offshore trading, the won was quoted at 1,152.5 per dollar, up 0.4 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,152.4.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.83 per cent.

In money and debt markets, December futures on three-year treasury bonds rose 0.02 point to 111.82.

The most liquid three-year Korean treasury bond yield fell by 0.6 basis point to 0.907 per cent, while the benchmark 10-year yield rose by 0.4 basis point to 1.537 per cent.

REUTERS