Seoul: Shares close over 2% higher on stimulus plans, oil market recovery

[SEOUL] South Korean shares rose more than 2 per cent on Thursday, gaining some ground after a 4 per cent loss in the previous session, as additional stimulus plans along with a recovery in oil markets buoyed investor confidence amid hopes that the worst of the coronavirus outbreak may have passed for the country.

The Seoul stock market's main KOSPI closed up 39.44 points, or 2.34 per cent, to 1,724.90, notching the sharpest gain in more than a week.

South Korean equities in recent days seemed to have strengthened their linkage to US futures, which surged on hopes for stimulus plans and a recovery in oil markets, said Lee Won, an analyst at Bookook Securities.

The US Federal Reserve announced on Wednesday it was temporarily easing its leverage rules for large banks as part of the effort to combat the economic slowdown inflicted by the coronavirus pandemic.

US Treasury Secretary said on Wednesday that President Donald Trump was interested in infrastructure projects to blunt the effects of the coronavirus crisis.

Crude oil futures surged on Thursday after Mr Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.

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Foreigners were net sellers of US$422.80 million worth of shares on the main board.

REUTERS