Seoul stocks jump up on hopes of economic recovery
Stocks closed sharply higher Thursday on hopes of an economic recovery fueled by improved U.S. economic indicators. The won rose against the dollar.
The Kospi jumped 28.67 points, or 1.36 percent, to close at 2,135.37. Trading volume was high at about 1.1 billion shares worth some 10.4 trillion won ($8.7 billion), with gainers outnumbering losers 671 to 176.
Foreigners sold a net 13 billion won, extending their latest selling streak to a fourth session. Individuals offloaded a net 210 billion won, while institutions bought a net 214 billion won.
The sharp increase in the Kospi was largely attributed to improvements in U.S. economic indicators that helped ease investor concerns over the global resurgence of Covid-19 infections.
The U.S. manufacturing data from the Institute for Supply Management (ISM) jumped to a 14-month high, only two months after crashing to an 11-year low.
U.S. Payroll processor Automatic Data Processing (ADP) also revised its May report, saying that private employers added about 3 million jobs, instead of reducing their payroll by nearly 2.8 million as earlier reported.
"The results of easing lockdowns in the U.S. turned out impressive. After the easing of lockdowns, the ISM manufacturing index in June and the ADP's corrected payroll report signaled some improvements," said SK Securities analyst An Young-jin.
Most large caps finished in positive terrain.
Samsung Electronics advanced 0.57 percent to 52,900 won, while SK hynix dipped 1.06 percent to 84,400 won.
Naver jumped 2.97 percent to 277,000 won, and Kakao shot up 5.94 percent to 285,500 won.
LG Chem climbed 0.92 percent to 496,000 won.
Pharmaceuticals fared strong, apparently taking a cue from the progress made in the early trial of an experimental Covid-19 vaccine from U.S. drugmakers Pfizer Inc. and BioNtech.
Samsung BioLogics surged 4.52 percent to 786,000 won, and Celltrion spiked 3.70 percent to 308,500 won.
The local currency closed at 1,200 won against the dollar, up 3.40 won from the previous session's close.
The secondary Kosdaq added 14.97 points, or 2.06 percent, to close at 742.55.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds lost 1.3 basis points to 0.836 percent, while the return on the benchmark ten-year government bond added 2.3 basis points to reach 0.67 percent.
BY CHEA SARAH, YONHAP [firstname.lastname@example.org]
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