Seoul stocks rise on upbeat U.S. report

Seoul’s main bourse rose Wednesday on favorable indicators on the U.S. economy. Federal Reserve Chair Janet Yellen spoke of a possible interest hike in March, adding a positive assessment of the U.S. economic state. Asset markets in Asia generally gained as the Dow Jones industrial average set a record high for the fourth session.

“Yellen’s upbeat remarks on the U.S. economy had a positive impact on the local stock market,” said Lee Kyong-min, an analyst at Daishin Securities.

The Kospi closed at 2,083.86, up 9.29 points, or 0.72 percent from the previous day.

Institutional investors net bought for the fourth straight session. On Wednesday, they purchased 159.5 billion won ($139.8 million) in stock. Retail and foreign investors offloaded 174.7 billion won and 28.4 billion won each.

Health companies led gains, adding 2.5 percent. Transportation increased 1.6 percent. Banks, on the other hand, shed 1.1 percent.

Market bellwether Samsung Electronics climbed 0.37 percent to 1,886,000 won. Hyundai Motor hit its highest level in two weeks, closing up 3.93 percent to 145,500 won while its auto parts affiliate Hyundai Mobis rose 1.21 percent to 251,000 won.

Cosmetics were strong on Wednesday: LG Household and Health Care added 2.06 percent to 844,000 won and AmorePacific increased 1.05 percent to 290,000 won.

KB Financial Group closed down 2.19 percent at 46,950 won. The Industrial Bank of Korea slid 4.14 percent to 12,750 won. Hyundai Engineering and Construction lost 2.45 percent to 45,700 won as Hyundai Development fell 2.99 percent to 42,150 won.

The secondary Kosdaq rose 4.41 points, or 0.72 percent to close at 615.95. Pharmaceutical and information technology components were main contributors to the uplift.

Celltrion rose 1 percent to 101,500 won as Medytox retreated 1.32 percent to 412,000 won. CJ E&M added 0.52 percent to 78,000 won and Kakao remained unchanged at 84,900 won.

The Korean won weakened 0.4 percent to 1,142.2 versus the greenback.

Government bond yields were generally steady with the three-year yield up one basis point to 1.66 percent and the three-year yield rising two basis points to close 2.15 percent.

BY SONG KYOUNG-SON, YONHAP [song.kyoungson@joongang.co.kr]