Stocks jump as economies globally start reopening

Finance

Published: 26 May. 2020, 17:58

Stocks jump as economies globally start reopening

An employee looks at the benchmark Kospi index displayed on the screen attached to the walls of dealing room of KB Kookmin Bank, in the financial district of Yeouido, western Seoul, Tuesday. [YONHAP]

Stocks closed higher Tuesday on institutional buying, fueled by hopes of major economies reopening. The won rose sharply against the dollar.

The Kospi closed at 2,029.78, spiking 35.18 points, or 1.76 percent, and breaching the psychologically significant 2,000-mark for the first time since March 6. Trading volume was high at about 999.5 million shares worth some 12.39 trillion won ($10.03 billion), with gainers outnumbering losers 664 to 184.

The index got off to a strong start and extended gains throughout the day. Gains were largely buoyed by the rollbacks of the coronavirus-incurred economic lockdowns, particularly in Europe, analysts said. The Euro Stoxx 50 surged 2.27 percent Monday. France's CAC 40 Index closed 2.15 percent higher, while Germany's DAX spiked 2.87 percent.

"The major economies are pushing for economic reopening ahead of the holiday season, especially among the tourist-rich regions in Western Europe," NH Investment & Securities analyst Noh Dong-kil said.

Hopes of economic stimulus at home also boosted investor sentiment.

Korea's Composite Consumer Sentiment Index came to 77.6 this month, up 6.8 points from a month ago when the index dropped to the lowest level since December 2008, according to the data from the Bank of Korea.

Institutions purchased a net 341.8 billion won, with foreigners scooping up a net 8.9 billion won. Retail investors sold a net 480.2 billion won, ending a three-day buying streak.

Most large caps closed in positive territory.

Samsung Electronics rose 0.82 percent to 49,250 won, and chipmaker SK hynix added 0.61 percent to 81,900 won. Hyundai Motor soared 1.88 percent to 97,800 won, with Kia Motors spiking 3.62 percent to 31,500 won. Naver slid 0.83 percent to 239,000 won while Kakao added 0.75 percent to 270,000 won.

The local currency closed at 1,234.30 won per dollar, down 9.90 won from the previous session's close. The secondary Kosdaq was up 9.22 points, or 1.28 percent, to close at 729.11.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds added 2.2 basis points to 0.837 percent, and the return on the benchmark 10-year government bond lost 1.2 basis points to reach 0.65 percent.

BY KIM YEON-AH, YONHAP [kim.yeonah@joongang.co.kr]