Stocks rebound on better U.S. jobs data

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Stocks rebound on better U.S. jobs data

Korean shares rose 0.79 percent yesterday, rebounding in four trading days as institutional and retail investors expanded their stock investments.

Stocks rose after better-than-estimated U.S. jobs data that added signs that the world’s largest economy is recovering. U.S. Labor Department said Wednesday in Washington that claims for jobless benefits decreased by 5,000 to 343,000 in the week ended June 29.

The benchmark Kospi jumped 14.48 points to close at 1,839.14 yesterday at the Seoul bourse. While foreign investors net sold their holdings in local shares, retail and institutional investors were large buyers.

Shares of Samsung Electronics jumped 1.23 percent to close at 1.3 million won ($1,141.40) while shares of Hyundai Mobis increased 1.16 percent to 262,000 won. Many of the other large-cap shares plunged, however.

Shares of Hyundai Motor dropped 0.47 percent to 214,000 won while shares of Posco dipped 0.51 percent to 292,500 won. Shares of Samsung Life Insurance also went down 0.46 percent to 107,500 won. Shares of financial institutions also declined.

Shares of Shinhan Financial Group dropped 0.27 percent to 37,300 won while shares of KB Financial Group dipped 0.61 percent to 32,600 won. Shares of Hana Financial Group also plunged 2 percent to close at 31,850 won.

The won, meanwhile, snapped a two-day drop as Korea said it will boost policies to add service-industry jobs and Goldman Sachs Group affirmed its view that the currency will gain this year. Government bonds rose. A Goldman Sachs report maintained the bank’s prediction the won will climb to 1,110 per dollar in three months.

The won strengthened 0.5 percent to 1,138.45 per dollar in Seoul, according to data compiled by Bloomberg.

“The government has been giving supportive comments and the Goldman Sachs’ view on the won may help lift market sentiment,” said Jeon Seung-ji, an analyst at Samsung Futures.

“Investors are likely to remain cautious as U.S. markets are shut for a holiday today [Thursday], and before tomorrow’s [Friday] jobs report that may offer clues about the Federal Reserve’s stimulus-exit strategy.”

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