SEOUL-- South Korean stocks rose to about a two-month high on Monday as falling oil prices and signs of a global economic recovery shored up investor sentiment despite concerns over the U.S.' potential rate hikes and the Ukraine crisis. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 18.05 points, or 0.66 percent, to close at 2,757.90 points. It is the highest since Feb. 10, when the index finished at 2,771.93.
Trading volume was heavy at around 1 billion shares worth some 9.59 trillion won (US$7.90 billion), with gainers outnumbering losers 603 to 243.
Foreign and institutional investors picked up shares worth 23.12 billion won and 12.41 billion won, respectively, offsetting individuals' selling of stocks worth 644 million won.
Seoul shares opened lower, as investors considered lingering geopolitical uncertainties surrounding Ukraine. The United States and the European nations are mulling additional sanctions on Russia amid reports of civilian massacres in a Ukrainian town near Kyiv, according to media reports.
But the index bounced back on the hope for China's envisioned economic stimulus package, as well as solid gains in U.S. employment.
Falling global oil prices also buoyed market sentiment, as the U.S. vowed to release the largest ever oil reserves of 1 million barrels per day for the next six months.
International benchmark Brent crude fell to a two-week low of US$104.39 a barrel Friday, and Dubai crude, South Korea's benchmark, stood at $101.61 per barrel, the lowest since March 15.
"Investors appear to have focused on signs of an economic recovery from both China and the U.S., though they remain cautious over the Federal Reserve's possible rate hikes amid high inflation," Kiwoom Securities analyst Kim Se-heon said.
Tech, chemicals and steel shares ended higher, leading the upturn.
Market bellwether Samsung Electronics rose 0.29 percent to 69,300 won on bargain hunting, and No. 2 chipmaker SK hynix advanced 0.86 percent to 117,000 won.
Key battery maker LG Energy Solution soared 2.45 percent to 438,500 won following a large drop in the previous session, and LG Chem climbed 0.57 percent to 526,000 won.
Top steelmaker POSCO Holdings jumped 2.08 percent to 294,000 won, and SK Innovation went up 0.93 percent to 217,000 won.
Airlines also ended in positive terrain, as eased antivirus restrictions are expected to boost demand for travel.
National flag carrier Korean Air Lines Co. jumped 2.4 percent to 31,950 won, and leading budget carrier Jeju Air Co. spiked 6.46 percent to 23,900 won.
Ssangbangwool (SBW), the country's leading underwear maker, shot up 29.7 percent to 1,310 won, on news that it is considering buying debt-ridden SsangYong Motor Co., after an acquisition bid by Edison Motors Co. failed last week.
The local currency closed at 1,214.40 won against the U.S. dollar, up 1.1 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 5.3 basis points to 2.837 percent, and the return on the benchmark five-year government bond rose 7.7 basis points to 3.019 percent.
Source: Yonhap News Agency