Views Article – Sharenet Wealth

Asia, Forex

S.Korean shares drop 1% as virus fears threaten economic revival

* KOSPI drops 1.1%, foreigners net sellers

* Korean won strengthens versus U.S. dollar

* South Korea benchmark bond yield falls

* For the midday report, please click

SEOUL, July 7 (Reuters) – Round-up of South Korean financial markets:

** South Korean shares snapped a three-day rally to end lower on Tuesday, as mounting COVID-19 cases globally clouded hopes of a swift economic recovery. The Korean won strengthened, while the benchmark bond yield fell.

** The Seoul stock market’s benchmark KOSPI closed down 23.76 points, or 1.09%, at 2,164.17.

** Heightening the anxiety over a second wave, U.S. health official Anthony Fauci said the current state of the COVID-19 outbreak in the United States “is really not good” and a “serious situation that we have to address immediately,” as the number of U.S. coronavirus deaths exceeded 130,000 on Monday.

** Closer home, South Korea reported 44 fresh cases on Tuesday, bringing the national tally to 13,181.

** Stocks rose as much as 0.9% in early session as U.S. services industry activity rebounded sharply in June, almost returning to its pre-COVID-19 pandemic levels.

** Meanwhile, investors maintained a cautious stance ahead of the second-quarter corporate earnings. Samsung Electronics Co Ltd flagged a 23% jump in quarterly operating profit on Tuesday, beating analysts’ estimates on solid chip sales to data centres catering for a work-from-home economy during the coronavirus pandemic. Company shares closed down 2.9%.

** Foreigners were net sellers of 391.4 billion won ($327.34 million) worth of shares on the main board.

** The won closed trading at 1,195.7 per dollar on the onshore settlement platform, little changed from its previous close at 1,195.8.

** In offshore trading, the won was quoted down 0.3% at 1,195.3 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,195.4.

** In money and debt markets, September futures on three-year treasury bonds rose 0.05 point to 112.07.

** The most liquid 3-year Korean treasury bond yield fell by 1.0 basis point to 0.843%, while the benchmark 10-year yield fell by 2.2 basis points to 1.387%.

($1 = 1,195.6900 won) (Reporting by Jihoon Lee, Editing by Sherry Jacob-Phillips)

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