Seoul: Stocks gain for eighth day on vaccine, recovery hopes

[SEOUL] South Korean shares rose for an eighth straight session on Wednesday to post their highest close in more than two years, as vaccine and recovery hopes outweighed worries over a new US stimulus package. The Korean won closed little changed, while the benchmark bond yield rose.

The benchmark Kospi ended up 13.68 points or 0.6 per cent at 2,432.35, its highest close since June 12, 2018.

Russian President Vladimir Putin said on Tuesday his country was the first to grant regulatory approval to a Covid-19 vaccine after less than two months of human testing.

South Korea's unemployment rate fell for a second month in July as business sentiment improved from the fallout of the coronavirus crisis.

But worries about political holdup in Washington over coronavirus relief capped further gains.

Foreigners were net sellers of 175.7 billion won (S$203.72 million) worth of shares on the main board.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The won closed trading at 1,185.3 per US dollar on the onshore settlement platform, 0.03 per cent higher than its previous close at 1,185.6.

In offshore trading, the won was quoted at 1,185.2 per US dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,185.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent.

In money and debt markets, September futures on three-year treasury bonds fell 0.03 point to 112.20, while the three-month certificate of deposit rate was quoted at 0.7 per cent in late afternoon trade.

The most liquid three-year Korean treasury bond yield rose by 0.8 basis point to 0.827 per cent, while the benchmark 10-year yield rose by 2.6 basis points to 1.371 per cent.

REUTERS