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Seoul: Stocks edge higher as trade talk optimism revives

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[SEOUL] South Korea's KOSPI stock index rose on Tuesday on revived optimism on Sino-US trade talks, fuelled by US President Donald Trump's latest remark. The Korean won strengthened, while the benchmark bond yield fell.

As of 0220 GMT, the Seoul stock market's main KOSPI rose 6.64 points, or 0.32 per cent, to 2,085.65.

Mr Trump said he was optimistic about resolving the US trade dispute with China. "We'll let you know in about three or four weeks whether of not it was successful. But I have a feeling it's going to be very successful," Mr Trump said.

Following Mr Trump's remark, South Korea's local stock market turned higher and other Asian markets are recovering, said Huh Jae-whan, an analyst at Eugene Investment & Securities.

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The KOSPI has risen 2.08 per cent so far this year, and fell 2.3 per cent in the previous 30 trading sessions.

The current price-to-earnings ratio is 12.10, the dividend yield is 1.28 per cent and the market capitalisation is 1,242.04 trillion won. 

The trading volume during the session on the KOSPI index was 351.23 million shares, and of the total traded issues of 891, the number of advancing shares was 443.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.09 per cent, after US stocks sank. Japanese stocks fell 0.82 per cent.

Foreigners were net sellers of 124.4 billion won (S$143.6 million) worth of shares on the main board.

The won was quoted at 1,185.6 per US dollar on the onshore settlement platform, 0.16 per cent higher than its previous close at 1,187.5. In offshore trading, the won was quoted at 1,186.6 per US dollar, up 0.1 per cent from the previous day, while in one-year non-deliverable forward trading its one-month contract was quoted at 1,185.1 per dollar.

 

The won has lost 5.9 per cent against the U.S dollar this year.

In money and debt markets, June futures on three-year treasury bonds rose 0.03 points to 109.54. The most liquid 3-year Korean treasury bond yield fell by 1.0 basis points to 1.711 per cent, while the benchmark 10-year yield fell by 0.6 basis points to 1.868 per cent.

REUTERS