SEOUL– The South Korean stock market sharply rebounded Friday as investor sentiment was boosted by upbeat earnings forecast from major U.S. retailers and overnight gains on Wall Street, as well as China’s pledge to take measures to spur growth. The local currency steeply rose against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) added 25.60 points, or 0.98 percent, to close at 2,638.05.
Trading volume was light at 580.94 million shares worth 7.68 trillion won (US$6.12 billion), with gainers outpacing decliners 638 to 201.
Institutional and foreign investors bought a net 555.3 billion won and 191.4 billion won worth of shares, respectively, while retail investors shed a net 745.9 billion won worth of shares.
“The weakness of the U.S. dollar helped improve investor sentiment. Investors also looked at China’s stimulus measures and moved to pick up battered shares,” analyst Park Sang-hyun of Hi Investment & Securities said.
According to foreign media reports, Chinese Premier Li Keqiang vowed to come up with detailed plans this month to implement measures to revive growth, warning of dire consequences in case of failure to prevent an economic slowdown.
“But concerns linger over the global economic slowdown and uncertainties are continuing over inflation and rate hikes, so it would take time for the index to make a meaningful upturn,” he added.
In Seoul, most blue chips gathered ground, with big-cap tech shares and chemicals surging on bargain hunting.
Top-cap Samsung Electronics grew 0.91 percent to 66,500 won, and major chipmaker SK hynix surged 2.91 percent to 106,000 won.
Samsung SDI, a major battery maker, climbed 1.37 percent to 590,000 won, and leading chemicals firm LG Chem soared 3.00 percent to 550,000 won.
Major battery maker LG Energy Solution remained unchanged at 430,500 won.
Airlines and travel agencies finished bullish after Japan said it will start reopening to foreign tourists in June.
National carrier Korean Air Lines rose 2.97 percent to 29,450 won, and Asiana Airlines also spiked 5.01 percent to 18,850 won. Leading travel agency Hana Tour soared 6.02 percent to 74,000 won.
Carmakers also rose, with Hyundai Motor adding 0.82 percent to 185,500, and Kia rising 0.61 percent to 82,900 won.
Major bio shares ended mixed, with Samsung Biologics falling 0.71 percent to 834,000 won and Celltrion growing 1.3 percent to 156,000 won.
After a volatile week amid concerns over high inflation, rate hikes, and economic slowdown, the key stock index inched down 0.05 percent from a week ago.
The local currency ended at 1,256.20 won against the U.S. dollar, up 10.8 won from the previous session’s close on the back of growing appetite for risky assets.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.8 basis point to 2.947 percent, and the return on the five-year government bonds lost 1.4 basis points to 3.135 percent.
Source: Yonhap News Agency