South Korea: Stocks trim gains as coordinated G7 response hopes dashed

[SEOUL] South Korean shares closed higher on Tuesday, but well off early gains, after a Reuters report dented hopes for a round of strongly coordinated stimulus measures by the G7.

The bloc's statement, expected on Tuesday or Wednesday, so far excludes any immediate calls for fiscal spending or coordinated central bank easing, a Group of Seven source told Reuters.

The benchmark KOSPI ended up 11.64 points, or 0.58 per cent, to 2,014.15.

Foreigners were net sellers of US$257.16 million worth of shares on the main board.

The country reported 600 new cases, taking the total infections to 4,812. Three more people died, bringing the total fatalities to 34.

KOSPI returned some of the early gains as investors were seen selling after the Reuters report, Hana Financial Investment analyst Lee Young-gon said.

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The financial markets will continue to be volatile on rising concerns that policy actions from global central banks may not meet investor expectations, Lee added.

The KOSPI has fallen 8.35 per cent so far this year.

REUTERS