Seoul: Shares snap nine sessions of gains on bleak China data

[SEOUL] South Korean shares snapped a nine-session winning streak on Friday, as sluggish Chinese retail sales and US job data dented recovery hopes, while growing doubts over another round of US stimulus weighed on sentiment.

The benchmark Kospi closed 30.04 points, or 1.23 per cent, lower at 2,407.49, its sharpest fall since June 29. For the week, it rose 2.4 per cent.

China's retail sales slipped in July as consumers failed to shake off wariness about the coronavirus, while the factory sector's recovery struggled to pick up pace.

US lawmakers continued to battle over a new coronavirus stimulus package, while data showed jobless claims dropped below 1 million last week for the first time since the start of the pandemic, although at least 28 million people are still receiving unemployment checks, indicating a weak labour market.

South Korea's finance minister said the economy was seen bouncing back to sequential growth in the third quarter given signs of gradual recovery in recent data, but a slump in exports remained a major concern.

Foreigners were net sellers of US$390.33 million worth of shares on the main board.

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REUTERS