Seoul: Stocks mark best day in over two months on strong exports, China data

[SEOUL] South Korean shares on Monday marked their sharpest daily gain in more than two months as strong domestic export data and China factory activity offset caution over the US election and global coronavirus lockdowns. The won and the benchmark bond yield rose.

The benchmark Kospi closed 33.01 points or 1.46 per cent higher at 2,300.16, the biggest daily increase since Aug 25. The index fell 2.56 per cent on Friday.

South Korea's factory activity expanded at the fastest pace in more than two years in October, according to a survey, a day after data showed its average daily exports last month recorded the first expansion in nine months on robust chip and car sales.

China's factory activity accelerated at the fastest pace in nearly a decade in October as domestic demand surged, a private survey showed on Monday.

South Korea's central bank chief said the bank would closely monitor markets ahead of the US election on Tuesday and amid a resurgence of Covid-19 cases in Europe, while pledging to stabilise markets if needed.

Foreigners were net buyers of 49 billion won (S$58.8 million) worth of shares on the main board.

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The won ended at 1,133.6 per US dollar on the onshore settlement platform, 0.13 per cent higher than its previous close at 1,135.1.

In offshore trading, the won was quoted at 1,134.1, while in non-deliverable forward trading its one-month contract was quoted at 1,133.5.

In money and debt markets, December futures on three-year treasury bonds fell 0.13 point to 111.63.

The most liquid three-year Korean treasury bond yield rose by 3.8 basis points to 0.974 per cent.

REUTERS