Korean markets rise after three-day slump
The benchmark Kospi turned around after its third day of decline to add up 55.52 points or 2.96 percent, closing at 1,934.2 thanks largely to growth in the Dow Jones and the Shanghai indices.Foreigners and retailers offloaded shares while institutional investors net bought.
The secondary Kosdaq also snapped its three-day decline. The index rose 22.45 points or 3.52 percent to finish at 660.57.
By market capitalization, only six of the top 50 shares on the Kospi dropped.
Market bellwether Samsung Electronics gained 1.41 percent to 1,147,000 won ($962). Korea Electric Power Corporation (Kepco) increased 2.92 percent to 47,650 won and chipmaker SK Hynix strengthened 3.6 percent to 36,000 won.
AmorePacific, the leading cosmetic company, jumped 8.11 percent to 346,500 won on news that CEO Suh Kyung-bae would expand the company’s business globally.
The nation’s Internet portal giant Naver surged 8.56 percent to close at 501,000 won. Investors’ growing expectations for the company’s popular mobile messenger application Line in Japan and analysts’ prediction that the yen will strengthen in the near future helped the share rise sharply.
Among steelmakers, the nation’s steel giant Posco soared 5.48 percent to 192,500 won. Korea Iron and Steel Association skyrocketed 11.51 percent to 56,200 won. Hyundai Steel sharply rose 8.95 percent to 54,800 won and Dongkuk Steel was up 9.61 percent to 6,730 won.
Meanwhile, leading automaker Hyundai Motor weakened 0.64 percent to close at 155,500 won. Sister company Kia Motors nudged down 0.4 percent to 50,400 won while auto parts affiliate Hyundai Mobis gained 2.13 percent to 216,400 won.
The won rose the most in a week as a rebound in global equities spurred demand for emerging-market assets.
The currency advanced 1 percent to close at 1,189.39 against the greenback in Seoul, data compiled by Bloomberg showed. It has slumped 8.3 percent in 2015 and fell to a five-year low of 1,208.72 on Tuesday.
The yield on the nation’s 10-year government bonds climbed one basis point to 2.25 percent, Korea Exchange prices showed. The three-year yield was steady at 1.68 percent.
BY CHOI JEONG-PIL, BLOOMBERG [choi.jeongpil@joongang.co.kr]
with the Korea JoongAng Daily
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