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Seoul stocks extend gains on optimism over Sino-U.S. dispute

All News 11:38 June 01, 2020

SEOUL, June 1 (Yonhap) -- South Korean stocks extended gains late Monday morning, buoyed by optimism that the United States is unlikely to risk its economy by pushing hard-line sanctions in response to China's passing of a controversial law concerning Hong Kong.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.31 points, or 1.35 percent, to 2,056.91 as of 11:20 a.m.

The continued gains were largely attributed to the milder-than-expected U.S.-China political friction over the communist state's passing of a new national security law that may severely undermine the civil freedom of Hong Kong citizens.

The set of countermeasures announced by U.S. President Donald Trump came with harsh rhetoric yet lacked specifics, leaving room for the possible de-escalation of tensions in the future.

"Mr. Trump has had many difficulties from the new coronavirus, and seems to be averting that pressure by maintaining the U.S.-China tension to a certain degree that does not harm his home economy," said HI Investment & Securities analyst Park Sang-hyun.

In Seoul, most large caps traded higher.

Market bellwether Samsung Electronics gained 0.79 percent, and No. 2 chipmaker SK hynix climbed 1.96 percent.

Top chemical maker LG Chem added 1.54 percent, while leading carmaker Hyundai Motor advanced 1.94 percent.

The local currency was trading at 1,228.45 won against the U.S. dollar, up 10.05 won from the previous session's close.


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