[Photo by Yonhap]
South Korean markets have extended rally for the second straight day Wednesday, lifted by overnight 11.4 percent jump in the Dow Jones Industrial Average on news of a $2 trillion stimulus package in the United States and multi-billion-dollar relief measures at home.
The benchmark Kospi gained 5.49 percent on Wednesday to end at 1,698.37. In intraday trading, it broke 1,700-threshold for the first time in six sessions.
The secondary Kosdaq stayed bullish throughout the day and closed the day up 5.01 percent at 504.48. It also is first return back above 500 in six sessions.
Foreigners returned to selling – disposing a net 333.1 billion won at Kospi and 84.3 billion won at Kosdaq.
The Korean won that opened up 1.1 percent against the U.S. dollar rose further to end the day at 1,229.9.
The Seoul government has also been trotting out multi-billion-dollar relief package and tax or regulatory exemptions during the emergency times for almost every day.
Finance Minister Hong Nam-ki at economic ministerial meeting on Wednesday morning said the foreign currency liquidity coverage ratio requirement will be eased temporarily from current 80 percent level to help reduce local companies’ burden on raising foreign liquidity.
On Tuesday the Korean government announced 100 trillion won ($80 billion) funding for businesses of all scale.
Bond prices rallied on eased jitters over liquidity crunch after the government pledged over 30 trillion won aimed to relieve short-term liquidity woes of Korean enterprises through bond purchase program.
The three-year government bond yield closed up 0.4 basis points at 1.131 percent. The 10-year bond yield tumbled 6.1 basis points to 1.647 percent.
By Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]