Seoul: Shares jump as US-China worries ease

[SEOUL] South Korean shares buoyed on Monday as the US President Donald Trump's threat against China over a national security law for Hong Kong was weaker than feared, even as the country's trade and manufacturing activity remained sluggish. 

The Seoul stock market's main Kospi closed up 35.48 points, or 1.75 per cent, at 2,065.08.

Investors were confident that the United States would not go so far as to break the trade deal with China, said Kim Sung-no, an analyst at BNK Securities.

President Trump on Friday ordered his administration to begin the process of eliminating special treatment for Hong Kong, but stopped short of calling an immediate end to privileges.

South Korea's exports tumbled in May for a third straight month, though at a slower pace, and manufacturing activity shrank at the sharpest pace in more than a decade as coronavirus-led lockdown measures weighed on global demand.

Foreigners were net buyers of US$90.05 million worth of shares on the main board.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

REUTERS