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S. Korean shares rally on economic restart hopes


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%.


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