Seoul: Shares gain for sixth day as investors look past Trump calling off stimulus talks

[SEOUL] South Korean shares on Wednesday reversed early losses to rise for a sixth day as investors looked past US President Donald Trump calling off ongoing talks for a fresh stimulus package. The Korean won strengthened, while the benchmark bond yield was unchanged.

Mr Trump, still being treated for Covid-19, abruptly ended talks with Democrats on an economic aid package on Tuesday, drawing criticism from presidential rival Joe Biden that he was abandoning Americans in the midst of a pandemic.

The benchmark Kospi closed up 21.04 points or 0.89 per cent at 2,386.94, extending its winning streak to a sixth straight session.

Talks for the new stimulus package may restart after the US presidential election with both parties taking a more positive stance toward it, said Seo Sang-young, an analyst at Kiwwom Securities.

Foreigners were net sellers of 94.4 billion won (S$110.4 million) worth of shares on the main board.

Shares of Samsung Electronics closed up 1.5 per cent as analysts said the chipmaker's September-quarter profit likely surged more than a third, fuelled by strong smartphone sales and a rush order of memory chips from Huawei Technologies. The world's biggest memory chip supplier is scheduled to announce preliminary July-September operating profit and revenue numbers on Thursday.

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Meanwhile, South Korea reported 114 new coronavirus cases on Wednesday, its biggest daily increase in nearly two weeks.

The won closed trading 0.24 per cent higher at 1,158.2 per US dollar on the onshore settlement platform, strengthening for a fourth straight session.

In offshore trading, the won was quoted up 0.5 per cent at 1,158.2 per US dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,157.8.

In money and debt markets, December futures on three-year treasury bonds were unchanged at 111.82 in late afternoon trade.

The most liquid three-year Korean treasury bond yield was flat at 0.905 per cent, while the benchmark 10-year yield was flat at 1.531 per cent.

REUTERS