Shares rebound as investors shake worriesKorean shares rose 0.22 percent yesterday, rebounding in just one day after plunging more than 1 percent on Thursday over speculation that the Federal Reserve may soon withdraw its stimulus policy and low manufacturing data from China. Retail and institutional investors were large buyers of Korean shares while foreign investors continued their selling streak.
The benchmark Kospi jumped 4.26 points to close at 1,973.45 yesterday in the Seoul bourse while the minor Kosdaq also went up 0.83 percent to close at 574.06.
Large-cap stocks gained ground yesterday.
Shares of Samsung Electronics went up 0.13 percent to 1.49 million won ($1,321) while shares of Hyundai Motor jumped 0.74 percent to 204,000 won. Stocks of Posco also increased 0.31 percent to 326,000 won and those of Hyundai Mobis went up 1.08 percent to 282,000 won.
Shares of financial firms also recovered.
Shares of Shinhan Financial Group jumped 1.39 percent to 40,200 won while those of KB Financial Group increased 1.22 percent to 37,300 won and Hana Financial Group, 2.59 percent to 37,600 won.
Japanese stocks, which dropped more than 7 percent on Thursday, also rebounded almost 1 percent higher yesterday. The Nikkei 225 Stock Average pared a decline of as much as 3.5 percent to close 0.9 percent higher at 14,612.45. Yesterday, the yen strengthened after Bank of Japan Governor Haruhiko Kuroda said enough stimulus had been announced.
“The market is going up and down like a roller coaster,” said Koji Toda, chief fund manager at Resona Bank in Tokyo. “The fundamentals haven’t changed, but more and more investors are trading on momentum. Things will probably calm down in a week.”
Korea’s won, meanwhile, posted a third weekly drop and government bonds fell on concern the Federal Reserve will scale back monetary stimulus that has fueled rallies in emerging-market assets. The currency had its longest losing streak in two months after Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank may taper its $85 billion a month of bond-buying, known as quantitative easing, if it’s confident of sustained improvement in the U.S. economy.
By Lee Eun-joo, Bloomberg [email@example.com]