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Seoul: Shares rally for 2nd day on economy reopening hopes

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South Korean shares rallied for a second day gaining more than 1 per cent as reopening of global economies boosted risk appetite and overshadowed concerns about Sino-US tensions.

[SEOUL] South Korean shares rallied for a second day gaining more than 1 per cent as reopening of global economies boosted risk appetite and overshadowed concerns about Sino-US tensions.

The Korean won strengthened, while the benchmark bond yield fell.

The Seoul stock market's main Kospi rose 24.37 points, or 1.3 per cent, to 2,019.59 as of 0214 GMT.

European sentiment got a lift when a survey showed German business morale rebounded sharply in May as activity gradually returned to normal after weeks of lockdowns, while Japanese stocks rose more than 2 per cent after the country lifted a state of emergency for Tokyo and four remaining areas on Monday.

Investors are confident that global economies will smoothly reopen, even if a second coronavirus wave breaks out - Samsung Securities analyst Seo Jung Hun.

Lingering concerns remained over Sino-US tensions as President Donald Trump's China advisers appeared to have moved closer together on a tougher approach to Beijing.

Foreigners were net sellers of 54.6 billion won (S$62.8 million) worth of shares on the main board. The won was quoted 0.6 per cent higher at 1,236.8 per US dollar on the onshore settlement platform.

In offshore trading, the won was quoted 0.3 per cent higher at 1,237 per US dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,236.8.

In money and debt markets, June futures on three-year treasury bonds rose 0.08 point to 112.31.

The most liquid three-year Korean treasury bond yield fell by 2.3 basis points to 0.792 per cent, while the benchmark 10-year yield fell by 2.9 basis points to 1.287 per cent.

REUTERS

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