Seoul: Shares log biggest daily gain in two weeks, LG Electronics shines

[SEOUL] South Korean shares rose on Wednesday by their most in two weeks, helped by a near 30 per cent surge in LG Electronics and hopes of a larger US stimulus package. The won weakened, while the benchmark bond yield fell.

By 6.30am GMT, the benchmark Kospi rose 26.14 points or 0.96 per cent to 2,759.82, the sharpest daily gain since Dec 9.

LG Electronics closed up 29.61 per cent after the South Korea-based company and automotive supplier Magna International said they were launching a joint venture that would make key components for electric cars.

US President Donald Trump said he wanted Congress to amend the coronavirus relief bill to raise the amount of stimulus checks and eliminate wasteful spending.

South Korean President Moon Jae-in faced growing public pressure over his Covid-19 vaccine procurement plans as the country struggled to contain a third wave of the pandemic, reporting its second-highest daily tally of cases.

Foreigners were net buyers of 82.7 billion won (S$99.6 million) worth of shares on the main board.

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The won was quoted at 1,107.9 per dollar on the onshore settlement platform, 0.05 per cent lower than its previous close at 1,107.4.

In offshore trading, the won was quoted at 1,107.9 per dollar, up 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,106.5.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.05 per cent.

The trading volume during the session in the Kospi index was 1,103.58 million shares. Of the total traded issues of 908, the number of advancing shares was 356.

In money and debt markets, March futures on three-year treasury bonds rose 0.06 point to 111.62.

The most liquid three-year treasury bond yield fell by 0.9 basis point to 0.936 per cent, while the benchmark 10-year yield fell by 1 basis point to 1.647 per cent.

REUTERS