SEOUL– South Korean stocks closed up over 1 percent Tuesday as Samsung Electronics and tech blue chips rose amid hopes for eased monetary tightening in the United States, analysts said. The local currency jumped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 27.25 points, or 1.15 percent, to 2,399.04. It marked the third straight session of a rise.
Trading volume was moderate at 492.8 million shares worth 8.5 trillion won (US$6.13 billion) with gainers outstripping decliners 670 to 202.
Foreigners and institutions were net buyers of local equities, scooping up a net 274 billion won and 441 billion won, respectively. Individual investors sold off a net 724 billion won.
“The anticipation over the Fed’s possible easing of monetary tightening, along with the dollar’s slide, is creating a mood for investors to opt for risky assets,” Han Ji-young, an analyst at Kiwoom Securities Co., said.
“Although the overall stock market environment has turned more optimistic, the market could see another period of volatility after the U.S. midterm vote and the result of the U.S. consumer prices index,” Han said.
U.S. stocks ended higher Monday (local time), on the eve of the midterm elections, with the prospect of the Republicans likely to control at least one chamber of Congress helping to erase some market uncertainties for the time being.
The U.S. consumer prices index report for October due out Thursday will provide clues as to whether the Fed’s hawkish interest rate hikes have helped tame the decades-high inflation and whether it will seek another 0.75 percentage-point hike or smaller in its next December policy meeting.
In Seoul, tech blue chips and IT service companies drove up the KOSPI. Market heavyweight Samsung Electronics gained 2.7 percent to 61,800 won, and chip giant SK hynix climbed 1.4 percent to 87,700 won.
Top internet portal operator Naver soared 5 percent to 177,500 won, and platform operator Kakao jumped 3.3 percent to 51,500 won.
In contrast, chemical companies closed down. Leading player LG Chem fell 1.9 percent to 691,000 won, and POSCO Chemical slid 1.4 percent to 211,500 won.
The local currency ended at 1,384.90 won against the U.S. dollar, up 16.3 won from Monday’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys slipped 3.0 basis points to 4.156 percent and the return on the benchmark five-year government bonds fell 2.8 basis points to 4.256 percent.
Source: Yonhap News Agency