Hopes for stimulus package help Kospi rise 1.67%
Stocks closed higher Monday despite a hike in global virus cases, buoyed by growing expectations for an additional stimulus package. The won rose against the dollar.
The Kospi jumped 35.81 points, or 1.67 percent, to close at 2,186.06. Trading volume was high at about 642 million shares worth 10.3 trillion won ($8.6 billion), with losers outnumbering gainers 613 to 230.
Korea is set to release details of a so-called New Deal stimulus package this week, aimed at creating jobs and fostering economic growth amid the coronavirus pandemic.
"The biggest event this week is the details of the coming Korean New Deal stimulus project," SK Securities analyst Han Dae-hoon said.
"Digital and green are the two keywords for the New Deal, meaning that the plan will primarily focus on digital infrastructure and contact-free industries," he added.
More upbeat data also boosted market sentiment.
Exports of memory chips, a key item, rose 7.7 percent in the first 10 days of July over a year earlier, raising Samsung Electronics 1.33 percent to close at 53,400 won. The No. 2 chipmaker added 0.24 percent to 83,000 won.
Most large caps closed higher.
Samsung BioLogics slipped 0.14 percent to 730,000 won, while Celltrion rose 1.39 percent to 329,000 won.
LG Chem added 3.4 percent to 547,000 won.
Hyundai Motor jumped 3.26 percent to 101,500 won, with its smaller affiliate Kia Motors surging 5.46 percent to 33,800 won.
Ncsoft added 2.22 percent to 965,000 won, with its rival Netmarble spiking 4.71 percent to 133,500 won.
Posco gained 2.75 percent to 187,000 won.
Internet giant Naver shed 0.67 percent to 297,000 won, and Kakao retreated 0.98 percent to 352,000 won.
The local currency closed at 1,200.9 won per dollar, down 3.6 won from the previous session's close.
The secondary Kosdaq was up 8.38 points, or 1.08 percent, to close at 781.19.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 0.1 basis points to 0.861 percent, while the return on the benchmark ten-year government bond added 3.6 basis points to reach 0.64 percent.
BY LEE JEE-YOUNG, YONHAP [firstname.lastname@example.org]
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