Signs of hope in U.S. lift markets in Korea
Reversing earlier losses, Korean stocks closed higher yesterday as institutions hunted for bargains among tech and financial issues, analysts said.Improved prospects for the U.S. economy fed optimism on the market. The local currency rose against the U.S. dollar.
The benchmark Kospi climbed 11.17 points, or 0.7 percent, to 1,734.72.
“Investor sentiment was heartened by reports that the Bush administration is about to announce an economic stimulus package to prevent a downturn and that the Federal Reserve will cut interest rates this month,” said Park Seok-hyun, an analyst at Eugene Investment and Securities.
Financial issues led the advance with the country’s leading lender, Kookmin Bank, rising 2.2 percent. The No. 1 financial services firm, Woori Finance Holdings, added 2.4 percent.
Tech and carmaker shares also chalked up solid gains with market leader Samsung Electronics climbing 1.3 percent to 567,000 won ($605). Industry leader Hyundai Motor added 2.2 percent.
However, amid expectations for monetary tightening by China, Posco, the world’s No. 4 steelmaker, fell 4 percent.
The No. 2 global shipyard, Samsung Heavy Industries, lost 3.8 percent.
Volume was moderate at 280.6 million shares worth 5.9 trillion won with gainers outnumbering losers, 494 to 294.
U.S. stocks plummeted Thursday after the Philadelphia Federal Reserve’s regional manufacturing index fell sharply, adding to fears that an economic recession is on the horizon.
The Dow Jones industrial average dipped 2.5 percent. The Nasdaq composite index lost 2 percent.
The local currency finished at 942.8 won to the U.S. dollar, up 2.8 won from Thursday’s close, as offshore investors sold the greenback, dealers said.
Korea’s Kosdaq rose 14.41 points to close at 666.32.
Yonhap
with the Korea JoongAng Daily
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