Fed leaves interest rate unchanged, markets rise
Seoul stocks rallied yesterday, led by exporters, on optimism about the U.S. economy, which is Korea’s second-biggest market. The benchmark Kospi added 22.67 points, or 1.7 percent, closing at 1382.90.The U.S. Federal Reserve decided on Wednesday to keep its key interest rate at 5.25 percent, saying in a statement that “inflation pressures seem likely to moderate over time.” And the Commerce Department said the U.S. economy expanded at an annual rate of 3.5 percent in the fourth quarter, the fastest pace in a year.
Korea’s Commerce Ministry said yesterday the nation’s exports grew 21.4 percent last month, the fastest pace in more than two years.
Accordingly, major exporters led Seoul stocks’ rally yesterday. Samsung Electronics rose 0.2 percent to 580,000 won ($619). Hyundai Motor added 1.3 percent and its affiliate, Kia Motors, gained 2.2 percent. LG.Philips LCD advanced 1.5 percent. LG Electronics climbed 1.3 percent.
But Hynix Semiconductor slipped 0.3 percent, after Morgan Stanley & Co. cut its recommendation on the stock.
Banking shares were also strong on optimism about their fourth-quarter earnings reports. Kookmin Bank, the nation’s largest lender, advanced 3.5 percent. Shinhan Financial Group, the second biggest, jumped 4.7 percent.
Hyundai Heavy Industries, the world’s largest shipbuilder, climbed 3 percent, after saying its December orders almost tripled.
Trade volume was 163.4 million shares worth 2.7 trillion won. Advancing shares overwhelmed decliners 504 to 244.
The secondary Kosdaq market rebounded after a four-day drop. The composite index climbed 6.09 points, or 1.1 percent, to 582.46.
Trade volume was 609.3 million shares worth 1.7 trillion won. Gaining shares led losers 492 to 394.
By Moon So-young Staff Writer [symoon@joongang.co.kr]
with the Korea JoongAng Daily
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