Seoul stocks close 1.42 pct higher on economic recovery hope, N. Korean relief

SEOUL, South Korean stocks closed 1.42 percent higher Wednesday on the back of upbeat economic data from the United States and Europe and eased tensions with North Korea, analysts said. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 30.27 points to close at 2,161.51. Trading volume was heavy at 895 million shares worth 12.7 trillion won (US$10.6 billion), with gainers outpacing losers 518 to 319.
Institutions scooped up a net 118.2 billion won. Meanwhile, foreigners and individuals offloaded a net 155.9 billion won and 9.5 billion won, respectively.
The index opened higher, tracking the overnight Wall Street rally, and it continued to build up gains on the back of a rise in tech and bio shares.
Market tracker IHS Markit’s eurozone Flash Composite Purchasing Managers’ Index, a good gauge of economic health, recovered to 47.5. In the U.S., new home sales jumped 16.6 percent in May.
Earlier in the day, North Korea suspended “military action plans” against South Korea during a Central Military Commission meeting presided over by leader Kim Jong-un.
“The KOSPI continues to maintain its upturn as various economic data showed improvement, followed by the North Korean risk being relieved,” Choi Yoo-june, an analyst at Shinhan Financial Investment, said.
In Seoul, most large-cap shares closed higher.
Tech shares were bullish, with top market cap Samsung Electronics gaining 2.92 percent to 52,900 won. No. 2 chipmaker SK hynix added 2.26 percent to 86,000 won to snap a four-day losing streak.
Bio stocks ended higher, with Samsung BioLogics going up 2.12 percent to 819,000 won after the biopharmaceutical affiliate of Samsung Group said it had clinched a 381 billion-won order to manufacture the products for a European firm.
Leading automaker Hyundai Motor moved up 4.36 percent to 103,000 won, and its sister company Kia Motors gained 4.65 percent to 33,750 won. Auto parts maker Hyundai Mobis shot up 6.22 percent to 205,000 won on news that the company developed core 5G-based connected car technology.
The local currency closed at 1,199.4 won against the U.S. dollar, up 9.4 won from the previous session’s close.

Source: Yonhap News Agency

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