Seoul: Shares extend loss as Covid-19 cases, US stimulus uncertainty weigh

[SEOUL] South Korean shares fell for a third straight session on Thursday, as a resurgence in domestic Covid-19 cases and fading hopes for US pandemic relief package soured sentiment. The won strengthened, while the benchmark bond yield fell.

By 6.32am GMT, the benchmark Kospi fell 19.27 points or 0.81 per cent to 2,361.21.

South Korea reported 110 new coronavirus cases as of Wednesday night, marking a triple-digit increase again after daily infections had largely slowed to the double-digit range in the past few days.

Denting sentiment further were downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely be made before the Nov 3 election dragged the Dow Jones Industrial Average down 0.58 per cent, while the S&P 500 lost 0.66 per cent.

Big Hit Entertainment, the management label of South Korean superstar K-pop group BTS, hit the stock market with a 9.6 trillion won (S$11.37 billion) valuation on Thursday before worries over its narrow revenue stream pulled shares below the debut price.

Mr Mnuchin's comments weighed on investor sentiment, while sharp declines in Big Hit Entertainment also discouraged retail investors from making big bets, said Na Jeong-hwan, an analyst at DS Investment & Securities.

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Shares of Samsung Electronics fell 1.48 per cent and LG Display dropped 1.82 per cent.

Foreigners were net sellers of 21 billion won worth of shares on the main board.

The won was quoted at 1,143.2 per US dollar on the onshore settlement platform, 0.32 per cent higher than its previous close at 1,146.9.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.20 per cent,.

The Kospi rose 7.44 per cent so far this year, and gained 1.5 per cent in the previous 30 trading sessions.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 0.879 per cent, while the benchmark 10-year yield dropped by 3.4 basis points to 1.479 per cent.

REUTERS