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S. Korean shares rally on economic restart hopes

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KOSPI rose 24.37 points, or 1.25%, to 2,019.59

South Korean shares rallied for a second day gaining more than 1 percent as the reopening of global economies boosted risk appetite and overshadowed concerns about Sino-U.S. tensions. The Korean won strengthened, while the benchmark bond yield fell.

The Seoul stock market’s main KOSPI rose 24.37 points, or 1.25%, to 2,019.59 as of 0214 GMT.

European sentiment got a lift when a survey showed German business morale rebounded sharply in May as activity gradually returned to normal after weeks of lockdowns, while Japanese stocks rose more than 2% after the country lifted a state of emergency for Tokyo and four remaining areas on Monday.

Investors are confident that global economies will smoothly reopen, even if a second coronavirus wave breaks out – Samsung Securities analyst Seo Jung-hun.

Lingering concerns remained over Sino-U.S. tensions as President Donald Trump’s China advisers appeared to have moved closer together on a tougher approach to Beijing.

Foreigners were net sellers of 54.6 billion won ($44.13 million) worth of shares on the main board.

The won was quoted 0.60% higher at 1,236.8 per dollar on the onshore settlement platform.

In offshore trading, the won was quoted 0.3% higher at 1,237.0 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,236.8.

In money and debt markets, June futures on three-year treasury bonds rose 0.08 point to 112.31.

The most liquid 3-year Korean treasury bond yield fell by 2.3 basis points to 0.792%, while the benchmark 10-year yield fell by 2.9 basis points to 1.287%.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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