Seoul: Stocks gain for third straight day on US stimulus hopes

[SEOUL] South Korean shares rose on Wednesday as renewed hopes for additional US stimulus helped investors look past sluggish preliminary trade data and a rise in coronavirus infections. The won and the benchmark bond yield both rose.

The benchmark Kospi closed up 12.45 points or 0.53 per cent at 2,370.86, extending a two-day winning streak.

The White House and Democrats in the US Congress moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill.

"Expectations for stimulus are continuing, but due to the US election uncertainty, investors will remain their wait-and-see stance until the uncertainty is eased," said Hana Financial Investment analyst Lee Young-gon.

Shares of the world's No 2 memory chip maker, SK Hynix declined 1.6 per cent, after its announcement on Tuesday to buy Intel's Nand memory chip business.

South Korean exports dropped 5.8 per cent in the first 20 days of October, returning to contraction after growing in September, government data showed on Wednesday.

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Meanwhile, the country reported 91 new coronavirus cases as of Tuesday midnight, higher than 58 a day earlier.

Foreigners were net buyers of 6.4 billion won (S$7.6 million) worth of shares on the main board.

The won ended trading at 1,131.9 per US dollar on the onshore settlement platform, 0.66 per cent higher than its previous close of 1,139.4.

In offshore trading, the won was quoted at 1,131.3 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,131.1.

In money and debt markets, December futures on three-year treasury bonds fell 0.07 point to 111.78.

The most liquid three-year Korean treasury bond yield rose by 2.4 basis points to 0.936 per cent, while the benchmark 10-year yield rose by 6.2 basis points to 1.523 per cent.

REUTERS