Seoul: Stocks rise over 1.5% after solid US data; virus fears linger

[SEOUL] South Korean shares climbed more than 1.5 per cent on Thursday, and were headed for a third straight session of gains, as investors took comfort in encouraging US economic data while keeping a close eye on the coronavirus outbreak.

The won and the benchmark bond yield rose.

Overnight, US stocks rallied after the ADP National Employment Report showed private payrolls jumped 291,000 in January, the most since May 2015. A separate report showed US services sector activity picked up last month.

Investors viewed that the virus would not reverse the upward trend seen in the global economy and financial markets, so they focused on solid economic data, said Kim Young Hwan, an analyst at KB Securities.

By 0204 GMT, the Seoul stock market's main Kospi rose 37.93 points, or 1.75 per cent, to 2,203.56. In early trade, it climbed as much as 1.84 per cent to its highest since Jan 23.

Earlier, global financial markets cheered several media reports of drug breakthroughs for the virus. The World Health Organization, however, played down those reports.

Another 73 people on the Chinese mainland died on Wednesday from the outbreak, the highest daily increase so far, bringing the total death toll to 563, the country's health authority said.

Foreigners were net buyers of 114 billion won (S$133.5 million) worth of shares on the mainboard.

The won was quoted at 1,183 per US dollar on the onshore settlement platform, 0.72 per cent higher than its previous close at 1,191.5.

In offshore trading, the won was quoted at 1,183.0 per US dollar, flat from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,181.6 per US dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.84 per cent. Japanese stocks rose 1.85 per cent.

The Kospi has risen 0.15 per cent this year, but lost 1.3 per cent in the previous 30 sessions.

The trading volume in the Kospi index was 258.64 million shares and, of the total traded issues of 904, the number of advancing shares was 697.

The won has lost 2.2 per cent against the US dollar this year.

In money and debt markets, March futures on three-year treasury bonds were unchanged at 110.74, while the three-month Certificate of Deposit rate was quoted at 1.42 per cent.

The most liquid three-year Korean treasury bond yield rose by 0.5 basis point to 1.311 per cent, while the benchmark 10-year yield rose by 1.2 basis points to 1.613 per cent.

REUTERS