Stocks post modest gains after choppy session
Stocks closed higher Monday on hopes of global stimulus measures and rising oil prices. The local currency fell against the dollar amid a renewed trade dispute between the United States and China.
The Kospi gained 9.83 points, or 0.51 percent, to close at 1,937.11. Trading volume was moderate at about 752.7 million shares worth some 9.24 trillion won ($7.49 billion), with losers outnumbering gainers 424 to 423.
The index got off to a weak start amid fears of a renewed trade row between the United States and China, prompted by U.S. sanctions on China's tech giant Huawei.
But the local stock market rebounded after investors continued buying undervalued stocks.
Hopes for global stimulus measures, along with a recovery in global oil prices, boosted investor sentiment.
"[U.S.] President Donald Trump is pushing for the so-called 'new deal' ahead of the presidential election that combines massive investment in social infrastructure programs with a negative interest rate," Oh Chang-seop, an economist at Hyundai Motor Securities, said.
Dubai crude, Korea's benchmark, traded 2.11 percent higher at $31.94 per barrel as of 3:35 p.m.
Foreign investors sold a net 93.3 billion won, extending their latest selling streak to a sixth consecutive session. Retail investors purchased a net 30.2 billion won while institutions scooped up a net 34.2 billion won.
Large caps closed mixed.
Samsung Electronics spiked 1.99 percent to 48,800 won, while LG Electronics surged 3.68 percent to 56,400 won.
Chipmaker SK hynix lost 0.98 percent to 81,100 won, while leading automaker Hyundai Motor shed 0.43 percent to 91,900 won.
The local currency closed at 1,232.40 won per dollar, up 1.40 won from the previous session's close.
The secondary Kosdaq was down 1.08 points, or 0.16 percent, to close at 690.85.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 1.1 basis points to 0.887 percent, and the return on the benchmark 10-year government bond added 2.5 basis points to reach 0.64 percent.
BY KIM YEON-AH, YONHAP [firstname.lastname@example.org]
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