June 16, 2020 / 7:39 AM / 18 days ago

S.Korean shares post sharpest gain in 3 months on Fed's corporate bond buying plan

* KOSPI soars, foreigners net buyers

* Korean won strengthens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, June 16 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares surged 5.3% on Tuesday, the sharpest daily gain in nearly three months, as the U.S. Federal Reserve’s plan to purchase corporate bonds boosted investors’ risk appetite. The Korean won strengthened, while the benchmark bond yield fell.

** The Seoul stock market’s main KOSPI closed up 107.23 points, or 5.28%, at 2,138.05, posting the sharpest daily percentage gain since March 25.

** The Fed said it will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility.

** South Korea’s vice finance minister warned on Tuesday that the country’s stock market may see increased volatility after a recent surge in the number of retail investors in stocks.

** The Korea Exchange said on Tuesday sidecars were activated on the benchmark KOSPI and the junior KOSDAQ , halting programme trading for five minutes, for the first time since March 24.

** It is worrying that the number of coronavirus infections is rising around the metropolitan Seoul area, yet it is a different question how the stock market reacts to it, said Lim Dong-min, an analyst at Kyobo Securities.

** South Korea reported 34 new coronavirus cases on Tuesday, of which 21 were domestic infections.

** Foreigners were net buyers of 93.2 billion won ($76.84 million) worth of shares on the main board.

** The won closed trading 0.73% higher at 1,207.2 per dollar on the onshore settlement platform.

** The currency, however, weakened sharply in offshore trading after a report that North Korea demolished an inter-Korean liaison office. The won was quoted 0.3% lower at 1,212.1 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,211.8.

** The most liquid 3-year Korean treasury bond yield was flat at 0.860%, while the benchmark 10-year yield fell by 2.4 basis points to 1.400%. ($1 = 1,212.8800 won) (Reporting by Jihoon Lee; Editing by Krishna Chandra Eluri)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below