Seoul: Shares rise on hopes of Fed's policy support; rising virus cases weigh

[SEOUL] South Korean shares rose on Wednesday as investors focused on hopes of additional stimulus from the US Federal Reserve (Fed), but worries about rising Covid-19 cases globally and tougher coronavirus-related curbs at home capped gains. The won gained, while the benchmark bond yield fell.

The benchmark Kospi closed up 6.49 points or 0.26 per cent at 2,545.64, reversing a 0.15 per cent decline in the previous session.

Fed chairman Jerome Powell said on Tuesday the economy would continue to need both fiscal and monetary policy support, adding its commitment to using all tools to support recovery.

South Korea reported 313 new daily Covid-19 cases, the highest since August, prompting authorities to tighten social distancing rules.

Shares of Samsung BioLogics jumped 4.91 per cent after the company said on Tuesday it is mass-producing a Covid-19 antibody treatment developed by Eli Lilly and Co, as the United States began distributing the drug last week after emergency-use approval.

Hyundai Motor shares slid 1.64 per cent as the company is being sued over a string of battery fires in its electric vehicles.

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Foreigners were net buyers for the tenth straight session, their longest buying spree since September 2019, purchasing a total net 5.2 trillion won (S$6.31 billion) worth of shares on the main board.

"Given Kospi's recent and rapid rally, adjustments would be made for some time being," said Hana Financial Investment analyst Lee Jae-sun.

The won ended at 1,103.8 per US dollar on the onshore settlement platform, 0.25 per cent higher than its previous close at 1,106.6.

In offshore trading, the won was quoted at 1,103.2, while in non-deliverable forward trading its one-month contract was quoted at 1,103.3.

The most liquid three-year Korean treasury bond yield fell by 0.9 basis point to 0.951 per cent.

REUTERS