Stocks, Won Up After U.S. Move

Korean stocks finished sharply higher Thursday, boosted by an overnight rally on Wall Street after another surprise interest-rate cut by the U.S. Federal Reserve Board.

The Korea Composite Stock Price Index leaped 23.31 points, or 4.3 percent, to 563.31. The index jumped to as high as 581.63 in early trading on heavy foreign buying, but some of the gains were pared by profit-taking by local institutional and retail investors.

In a hectic buying frenzy, foreign investors snapped up stocks worth 672 billion won ($500 million), the second heaviest in history, after the U.S. Nasdaq Composite Index soared more than 8 percent Wednesday, sparked by the Fed's rate cut.

The surge in share prices boosted the value of the local currency. In Seoul's foreign exchange market, the won strengthened 1.2 percent, closing at 1,298.00 won against the U.S. dollar, clearing 1,300 for the first time in four weeks.

On the stock market, trading volume was extremely heavy at 559 million shares valued at 3.6 trillion won ($2.75 billion). Advancing issues overwhelmed retreaters 528 to 251, with 77 other stocks unchanged.

Leading the day's gains, Samsung Electronics Co. shot up 9.8 percent to 235,000 won, and SK Telecom Co. rallied 8.3 percent to 216,000 won.

The Kosdaq market reached its highest level in more than one month, buoyed by strong foreign buying. Its composite index added 2.71 points, or 3.8 percent, to 74.90.

by Kim Hyun-chul