Seoul stocks snap 3-day losing streak on stimulus hopes

South Korean shares closed higher Monday, snapping a three-day losing streak, as stimulus steps in major economies boosted investors' appetite for risk. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.42 points, or 0.79 percent, to close at 2,217.86. Trading volume was high at about 918 million shares worth some 9.3 trillion won ($11.7 billion), with gainers outnumbering losers 561 to 284.

Foreigners bought a net 156 billion won, with institutions purchasing a net 141 billion won. Retail investors offloaded a net 298 billion won.

The KOSPI traded higher on weak US greenback, triggered by stimulus moves in major economies around the world, analysts said.

"The EU agreement on economic relief package weakened the value of the US greenback against other currencies," Samsung Securities researcher Seo Jung-hun said, expecting a rise in foreign buying.

European leaders recently agreed on a stimulus package worth 750 billion euros ($869 billion) to revive the pandemic-hit economy.

Investor sentiment further strengthened following reports that US Republicans were set to roll out a US$1 trillion COVID-19 aid package plan early this week, with support from the White House.

The escalating US-China tensions remained a risk, however, amid signs that virus infections may be slowing.

In Seoul, most large caps closed higher.

Market bellwether Samsung Electronics jumped 2.58 percent to 55,600 won, while No. 2 chipmaker SK hynix lost 1.08 percent to 82,800 won.

Leading chemical maker LG Chem gained 0.19 percent to 517,000 won, and top automaker Hyundai Motor added 0.82 percent to 123,500 won. 

Internet giant Naver added 1.25 percent to 284,500 won, and its rival Kakao rose 0.62 percent to 326,500 won.

Leading steelmaker POSCO rose 1.03 percent to 196,000 won.

Among decliners, top pharmaceutical firm Samsung Biologics shed 0.13 percent to 754,000 won, with Celltrion retreating 0.63 percent to 317,000 won.

The local currency closed at 1,196.10 won against the US dollar, up 5.40 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.4 basis point to 0.803 percent, and the return on the benchmark five-year government bond increased 0.4 basis point to 1.053 percent. (Yonhap)