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Seoul: Stocks jump on Sino-US trade talks progress, China data

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[SEOUL] South Korea's Kospi stock index climbed more than 1 per cent on Monday boosted by progress made in Sino-US trade talks and China's strong factory activity data.

The Korean won and the benchmark bond yield rose.

China's manufacturing sector unexpectedly returned to growth for the first time in four months in March, in a sign that government stimulus measures may be slowly gaining traction, a private business survey showed.

As of 0220 GMT, the Seoul stock market's main Kospi rose 24.40 points or 1.14 per cent, to 2,165.07 points.

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Foreigners and institutions are net buying of Kospi with risk appetite improved by progress in trade talks and Chinese economic data, said Noh Dong Gil, an analyst from Shinhan Investment Corp.

Foreigners were net buyers of 128.8 billion won worth of shares on the mainboard.

The won was quoted at 1,133.1 per US dollar on the onshore settlement platform, 0.18 per cent higher than its previous close at 1,135.1.

In offshore trading, the won was quoted at 1,133.3 per US dollar, up 0.2 per cent from the previous day, while in one-year non-deliverable forward trading its one-month contract was quoted at 1,132.2 per US dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.05 percent, after US stocks rose.

Japanese stocks rose 2.01 per cent. The Kospi has risen 6.17 per cent so far this year, and fell 3.8 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 120.01 million shares and, of the total traded issues of 893, the number of advancing shares was 593.

The won has lost 1.5 per cent against the US dollar this year. In money and debt markets, June futures on three-year treasury bonds fell 0.07 point to 109.62, while the three-month Certificate of Deposit rate was quoted at 1.9 per cent.

The most liquid three-year Korean treasury bond yield rose by 1.9 basis points to 1.709 per cent, while the benchmark 10-year yield rose by 1.3 basis points to 1.846 per cent.

REUTERS