Stocks jump 1-percent-plus ahead of the G-20
Shares surged by more than 1 percent Wednesday on growing optimism about a U.S.-China trade deal. The won sharply appreciated against the dollar.The benchmark Kospi gained 1.24 percent, or 26.07 points, to 2,124.78.
The daily turnover reached a nearly four-year high of 847.5 million shares worth 4.86 trillion won ($4.1 billion).
Individuals sold a net 460.4 billion won worth of shares and foreign investors bought a net 300.4 billion won worth. Institutions bought a net 169.2 billion won of stocks.
The Kospi had a strong start, tracking overnight gains on Wall Street. U.S. stock markets surged after U.S. President Donald Trump said that he would meet with Chinese leader Xi Jinping at the Group of 20 summit in Osaka, Japan, next week, boosting hopes that the world’s two largest economies may agree to end their trade spat.
“The market responded positively as uncertainties from the trade dispute were somewhat eased following the news that Trump-Xi talks will happen,” said Yoon Jung-seon, an analyst at KB Investment & Securities.
“Rising expectations of monetary policy easing also pushed up the index.”
Most large-cap shares closed higher, with tech stocks leading the gains.
Samsung Electronics increased 2.25 percent to 45,350 won, and chipmaker SK Hynix shot up 5.99 percent to 67,200 won.
Posco inched up 1.04 percent to 242,000 won, while Hyundai Steel climbed 0.96 percent to 42,150 won.
Celltrion advanced 1.68 percent to 211,500 won, and Samsung BioLogics climbed 0.32 percent to 315,000 won.
Yet auto shares finished in negative terrain, with No. 1 carmaker Hyundai Motor losing 0.71 percent to 140,000 won and its smaller sister company Kia Motors sliding 1.51 percent to 42,350 won. Auto parts maker Hyundai Mobis was flat at 223,500 won.
The Kosdaq rose 2.85 points, or 0.40 percent, to end the session at 717.71.
The tech-heavy index was lifted due to a 4.3 percent rise in Philadelphia Semiconductor Index overnight.
The won closed at 1,176.1 won against the dollar, sharply down 9.7 won from the previous session’s close, its highest level since May 8, when the comparable figure was 1,169.40 won.
Bond prices ended higher. The yield on three-year bonds fell 0.9 basis points to 1.48 percent. The yield on 10-year bonds fell 1.3 basis points to 1.60 percent.
BY KIM HE-YU, YONHAP [kim.heyu@joongang.co.kr]
with the Korea JoongAng Daily
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