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Seoul stocks trade higher late Wed. morning despite hiccup in U.S. stimulus push

All News 11:32 October 07, 2020

SEOUL, Oct. 7 (Yonhap) -- South Korean shares slightly rebounded late Wednesday morning after a weak start as investors still clung on to hopes for U.S. stimulus, though U.S. President Donald Trump pushed back talks for a deal for stimulus measures.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.35 points, or 0.31 percent, to 2,373.25 as of 11:20 a.m.

The index opened lower, tracking overnight losses on Wall Street after Trump said he would postpone negotiations for a stimulus deal with the Democrats until after the U.S. presidential election slated for next month.

Trump tweeted Tuesday (U.S. time) that current talks reached an impasse as the Democrats proposed stimulus worth $2.4 trillion, compared to his administration's offer of $1.6 trillion.

South Korean shares gathered ground, however, as investor expectations for a large U.S. stimulus remained, pinning hopes on a win for the Democrats in the upcoming election.

Investor sentiment was also buoyed after global credit appraiser Fitch Ratings said it maintained South Korea's credit rating at "AA-" with a stable outlook.

In Seoul, most large cap stocks traded higher.

Market bellwether Samsung Electronics rose 0.68 percent, while No. 2 chipmaker SK hynix edged up 0.12 percent.

Pharmaceutical giant Samsung Biologics added 0.84 percent, and Celltrion climbed 0.78 percent.

Internet portal giant Naver shed 0.82 percent, and rival Kakao fell 0.26 percent.

The local currency was trading at 1,162.10 won against the dollar, down 1.10 won from the previous session's close.


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