Seoul: South Korean stocks closed higher for a third consecutive session Thursday, as weaker-than-expected U.S. jobs data reinforced hopes for a Federal Reserve rate cut next month. The local currency fell against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) finished up 16.41 points or 0.52 percent, to close at 3,200.83.
According to Yonhap News Agency, trade volume was light at 280.2 million shares worth 7.9 trillion won (US$5.7 billion). Winners outnumbered losers 608 to 248. Foreigners were net buyers, purchasing 202.5 billion won. Institutional investors offloaded a net 23 billion won, and retail investors sold off a net 284.9 billion won.
U.S. stocks mostly closed higher overnight, following the U.S. job openings tally for July, which marked a 10-month low. "Amid concerns of a sluggish U.S. job market, traders are seeing a 99 percent chance that the Federal Reserve will cut rates," said Lee Kyoung-min, an analyst at Daishin Securities. He added that the recent declines in U.S. Treasury yields brought additional tailwinds to the local stock market.
Investors are now keeping an eye on the U.S. employment data due on Friday (U.S. time) -- one of the key gauges of the Fed's next policy direction. In Seoul, large-cap shares were mixed, with semiconductors, chemicals, and IT shares being among the winners.
Top-cap Samsung Electronics inched down 0.43 percent to 70,100 won, while its rival SK hynix advanced 1.14 percent to 265,500 won. LG Chem moved up 2.96 percent to 278,000 won, battery maker SK On's parent company, SK Innovation, jumped 4.93 percent to 106,400 won and portal operator Naver rose 2.71 percent to 227,000 won.
Leisure shares, such as hotels and duty-free store operators, also gathered ground on anticipations more Chinese tourists will visit South Korea during the upcoming Lunar New Year holidays. Hotel Shila added 4.47 percent to 47,950 won, while Hyundai Department Store, a major duty-free store operator, spiked 6.45 percent to 74,300 won.
The Korean won was quoted at 1,392.5 won against the U.S. dollar as of 3:30 p.m., down 0.3 won from the previous session's close.