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Seoul: Stocks flat as Hong Kong unrest unnerves investors

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South Korean shares were flat on Wednesday as mounting tensions in Hong Kong over China's proposed security law eclipsed the optimism about economies reopening from the lockdown.

[SEOUL] South Korean shares were flat on Wednesday as mounting tensions in Hong Kong over China's proposed security law eclipsed the optimism about economies reopening from the lockdown.

The benchmark KOSPI edged up 1.42 points, or 0.07 per cent, to 2,031.20, as tensions between China and the United States ramped up.

Worsening relations between the world's two biggest economies could further hobble global business activity, which is already under intense pressure due to the pandemic.

China's parliament is expected to approve a proposed security law on Thursday that would reduce Hong Kong's separate legal status, calling into question the special economic status the territory currently enjoys under the US law.

South Korean financial markets also awaited the Bank of Korea's policy meeting on Thursday, where it is expected to cut its base rate to a fresh record low of 0.50 per cent.

REUTERS

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