Seoul: Stocks firm on US stimulus deal hopes; won closes at 5-month high

[SEOUL] South Korean shares rose on Wednesday, tracking a firmer finish on Wall Street on hopes that US lawmakers would reach a deal on a new coronavirus stimulus package this week. The Korean won closed at a five-month high, while the benchmark bond yield fell.

The benchmark Kospi closed up 31.89 points or 1.4 per cent at 2,311.86.

White House negotiators on Tuesday vowed to work "around the clock" with congressional Democrats to try to reach a deal on coronavirus relief by the end of this week, as the pandemic takes a heavy toll on American life.

South Korea's finance ministry said on Wednesday it will step up property market measures to eradicate speculative transactions, and pledged to investigate transactions of homes worth more than 900 million won (S$1 million).

Foreigners were net sellers of 51.8 billion won worth of shares on the main board.

The won ended trading at 1,188.8 per US dollar on the onshore settlement platform, 0.45 per cent higher than its previous close at 1,194.1.

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In offshore trading, the won was quoted at 1,188.8 per US dollar, up 0.4 per cen from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,188.6.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.53 per cent.

The trading volume during the session in the Kospi index was 830.19 million shares. Of the total traded issues of 902, the number of advancing shares was 400.

In money and debt markets, September futures on three-year treasury bonds rose 0.04 point to 112.31.

The most liquid three-year Korean treasury bond yield fell by 1.1 basis points to 0.793 per cent in late afternoon trade, while the benchmark 10-year yield fell by 1.5 basis points to 1.291 per cent.

REUTERS