Seoul: Stocks snap three-day win streak as US stimulus talks drag, virus cases rise

[SEOUL] South Korean shares fell on Thursday, after three straight sessions of gains, on dented hopes of a US stimulus bill and as domestic coronavirus infections rose. Both the won and the benchmark bond yield also declined.

The benchmark Kospi closed down 15.81 points or 0.67 per cent at 2,355.05, logging the sharpest fall in a week.

High-level negotiations on a new coronavirus aid bill faced a setback on Wednesday when US President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise.

"While talks on US stimulus are stalled, Covid-19 related uncertainties dampened investor sentiment," said Daishin Securities' analyst Lee Kyoung-min.

The country reported 121 new coronavirus cases as of Wednesday midnight, higher than 91 a day earlier, according to the Korea Disease Control and Prevention Agency.

Most market heavyweights were down, with chip giant Samsung Electronics shedding 1.3 per cent.

Bucking the trend, electric vehicle battery maker LG Chem jumped 3.6 per cent after the company and its major customer Tesla both posted record quarterly profits.

Meanwhile, South Korea and China renewed the currency swap agreement for another five years and expanded the size by about 11 per cent in a move aimed at strengthening trade and financial stability.

Foreigners were net sellers of 73.4 billion won (S$87.7 million) worth of shares on the main board.

The won ended trading at 1,132.9 per US dollar on the onshore settlement platform, 0.09 per cent lower than its previous close of 1,131.9.

In offshore trading, the won was quoted at 1,132.5 per dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,131.9.

The most liquid three-year Korean treasury bond yield fell by 1 basis point to 0.926 per cent.

REUTERS

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