Seoul: Shares edge higher on China's factory data, post weekly loss

[SEOUL] South Korean shares edged higher on Friday as Chinese factory data showed signs of a recovery in the world's second-largest economy, although simmering Sino-US tensions capped gains.

The Seoul stock market's main KOSPI closed up 2.32 points, or 0.12 per cent, to 1,927.28.

But it dropped 1 per cent for the week, its second straight weekly loss, having rebounded sharply in April from coronavirus-driven routs. 

China's factory output rose for the first time this year as the world's second-largest economy slowly emerged from its coronavirus lockdown, although consumption remained depressed amid increased job losses.

US President Donald Trump signalled a further deterioration of his relationship with China over the novel coronavirus, saying he has no interest in speaking to President Xi Jinping right now and going so far as to suggest he could even cut ties with the world's second largest economy. 

Stocks recovered from early losses after better-than-expected factory data from China, South Korea's largest trading partner, said Daeshin Securities' analyst Lee Kyoung-min, adding that a sharp increase in institutional investors' equity purchases buoyed the index. 

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Foreigners were net sellers of US$359.44 million worth of shares on the main board. 

The trading volume during the session in the KOSPI index was 850.91 million shares. Of the total traded issues of 896, the number of advancing shares was 492.

REUTERS