Seoul: Shares finish higher as economic hopes offset China-US worries

[SEOUL] South Korean shares ended slightly higher on Friday as risk appetite was upheld by economic recovery hopes despite China-US tensions over Hong Kong.

The Seoul stock market's main Kospi closed up 1.06 points, or 0.05 per cent, at 2,029.60. The index gained 3.02 per cent for the week, the sharpest in 4 weeks, and 4.21 per cent for the month.

Investors worry that US President Donald Trump's response to Hong Kong security law would include measures that could severely hurt ongoing economic recovery efforts, said Seo Jung-hun, an analyst at Samsung Securities.

Mr Trump has said he will give a news conference on China on Friday, as his administration moves to pressure Beijing over its treatment of Hong Kong.

South Korea's factory output shrank at its sharpest pace in more than 11 years in April, official data showed, as a spike in the number of coronavirus infections and lockdown measures across the world decimated global demand.

Foreigners were net sellers of US$157.99 million worth of shares on the main board.

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REUTERS