SEOUL– South Korean stocks extended their winning streak to a fourth day Wednesday with investors paying keen attention to the U.S. midterm election results. The Korean won surged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 25.37 points, or 1.06 percent, to close at 2,424.41 points.
Trading volume was moderate at about 675 million shares worth some 9.2 trillion won (US$6.7 billion), with gainers outnumbering losers 575 to 272.
Institutions bought a net 348 billion won and foreigners scooped up 413 billion won, while retail investors offloaded 777 billion won.
After opening a tad higher, the KOSPI increasingly gained ground throughout the session.
Investors are speculating that the U.S. midterm election results may affect the currency market in particular.
The prospect is that the Republicans are 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 (local time) 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.
“The ascent of the Korean won and continued buying by foreign investors helped buoy the South Korean stocks,” Daeshin Securities analyst Lee Kyung-min said.
In Seoul, market bellwether Samsung Electronics grew 0.32 percent to 62,000 won, and No. 2 chipmaker SK hynix increased 1.71 percent to 89,200 won.
Top automaker Hyundai Motor lost 0.29 percent to 169,500 won, and its smaller affiliate Kia slipped 0.15 percent to 67.400 won.
Chemical giant LG Chem swelled 3.47 percent to 715,000 won.
The Korean won closed at 1,364.8 won against the U.S. dollar, up 20.1 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 7 basis points to 4.086 percent, and the return on the benchmark five-year government bond fell 7.7 basis points to 4.179 percent.
Source: Yonhap News Agency