Seoul: Shares jump most in two weeks on falling virus cases, upbeat China data

[SEOUL] South Korean shares posted their sharpest gain in two weeks on Monday, as easing domestic Covid-19 cases and upbeat China data cheered investor sentiment. The won weakened, while the benchmark bond yield also fell.

The benchmark Kospi closed up 29.29 points or 1.29 per cent at 2,308.08, logging the sharpest daily rise since Sept 14.

"Easing of domestic resurgence in Covid-19 ... and optimism on China's industrial profits data lifted recovery hopes," said Lee Kyoung-min, Daishin Securities analyst.

The country reported 50 new coronavirus cases, the lowest in more than a month since a new wave of outbreaks emerged from a church and a large political rally last month.

China's industrial profits grew for the fourth straight month in August, further supporting economic recovery hopes.

Shares of Hyundai Motor and messaging app service provider Kakao led gains by jumping 3.2 per cent and 5 per cent, respectively.

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South Korean chipmakers Samsung Electronics and DB Hitek rose on hopes that they may benefit from the United States' new export restrictions on China's biggest chipmaker SMIC.

South Korean biopharmaceutical company Celltrion and its affiliates Celltrion Pharm and Celltrion HealthCare jumped on the company's merger announcement.

Meanwhile, a Reuters survey showed South Korea's exports likely grew for the first time in seven months in September due to more working days and heavy shipments of microchips as China's Huawei Technologies stockpiled ahead of US sanctions.

Foreigners were net sellers of 64.2 billion won (S$75.2 million) worth of shares on the main board.

The won ended trading at 1,173.6 per US dollar on the onshore settlement platform, 0.11 per cent lower than its previous close at 1,172.3.

In offshore trading, the won was quoted at 1,173.2 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,172.5.

The most liquid three-year Korean treasury bond yield fell by 1.4 basis points to 0.841 per cent.

REUTERS