Seoul: Shares gain as lockdown curbs ease; Sino-US rift in focus

[SEOUL] South Korean shares rose on Monday as the global easing of coronavirus-led restrictions lifted hopes of an economic recovery, though worries of mounting Sino-US tensions capped gains. The Korean won and the benchmark bond yield weakened.

The Seoul stock market's main Kospi was up 7.45 points, or 0.42 per cent, at 1,977.58, as of 0216 GMT.

South Korean shares have recovered more sharply from the coronavirus-driven routs than others, said Kyobo Securities' analyst Lim Dong-min, adding that the stock prices will be rangebound as worries of a second wave of Covid-19 infections and renewed Sino-US tensions persist.

The US Commerce Department said late Friday it would add 33 Chinese companies and other institutions to a blacklist for human rights violations and to address US national security concerns.

The decision came in hours after China proposed imposing national security laws on Hong Kong after last year's pro-democracy unrest.

Shares of Kakao Corp, South Korea's top mobile messenger provider, rose more than 6 per cent as the Covid-19 crisis boosted demand for "contactless services" such as online payment and e-commerce with many people stuck indoors.

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Foreigners were net sellers of 69.1 billion won (S$79.3 million) worth of shares on the mainboard.

The won was quoted at 1,241.8 per dollar on the onshore settlement platform, 0.39 per cent lower than its previous close at 1,237.0.

In offshore trading, the won was quoted at 1,242.3 per dollar, down 0.1 per cent from the previous session, while in non-deliverable forward trading its one-month contract was quoted at 1,242.0.

In money and debt markets, June futures on three-year treasury bonds rose 0.01 point to 112.20.

The most liquid three-year Korean treasury bond yield fell by 1.6 basis points to 0.825 per cent, while the benchmark 10-year yield dropped 1.2 basis points to 1.338 per cent.

REUTERS