Seoul: Stocks see biggest gain in a month on trade hopes

[SEOUL] South Korean shares closed 1.6 per cent higher on Tuesday, their sharpest gain in nearly a month, after the United States and China indicated progress in their trade talks and daily Covid-19 infections in the country eased from their peaks.

The benchmark Kospi closed up 36.90 points, or 1.58 per cent, at 2,366.73.

Top US and Chinese officials see progress on resolving issues over the Phase 1 trade deal reached in January and both sides are committed to the success of the agreement, the US Trade Representative's Office said.

South Korea reported 280 new infections as of midnight Monday, a drop in daily new cases from 397 as of Saturday midnight.

Meanwhile, the Bank of Korea is expected to keep interest rates on hold on Thursday as it weighs concerns about rising household debt and property prices.

The market will need to see the downward revision of BOK's economic projection, possibilities of toughening social-distancing rules and US Federal Reserve Chair Jerome Powell's remarks from the Jackson Hole symposium, said Lee Kyoung-min, Daishin Securities' analyst.

Foreigners were net buyers of US$128.04 million worth of shares on the main board.

REUTERS