Seoul stocks up as EU spending plan boosts optimism

A screen shows the closing figures for the Kospi at a trading room at Hana Bank in Jung District, central Seoul, on Tuesday. [YONHAP]

Stocks closed up 1.4 percent on Tuesday after the leaders of European Union member nations reached a massive stimulus package deal to support pandemic-hit economic activities. The won rose against the dollar.

The Kospi rose 30.63 points, or 1.39 percent, to close at 2,228.83. Trading volume was high at about 906 million shares worth some 15.5 trillion won ($12.9 billion), with gainers outnumbering losers 565 to 279.

Foreigners bought a net 437 billion won, and institutions purchased a net 146 billion won. Retail investors sold a net 562 billion won.

The Kospi got off to a strong start on hopes of Covid-19 vaccine development and extended gains on the EU's $2.1 trillion stimulus package.

"The EU's agreement on the stimulus package increased optimism for a global economic rebound," Lee Won, an analyst at Bookook Securities, said. The analyst said the EU deal is expected to boost foreign investors' appetite for risky assets and keep the Kospi on the rise for a while.

In Seoul, most large caps closed higher.

Samsung Electronics jumped 2.03 percent to 55,300 won, with chipmaker SK hynix adding 2.31 percent to 84,100 won.

Samsung BioLogics advanced 1.49 percent to 750,000 won, while Celltrion slipped 0.46 percent to 321,500 won.

Internet giant Naver gained 2.66 percent to 270,000 won, with its rival Kakao rising 1.94 percent to 316,000 won.

Ncsoft stayed flat at 859,000 won, with its rival Netmarble losing 0.39 percent to 129,000 won.

LG Chem spiked 3.91 percent to 531,000 won while Posco gained 0.54 percent to 187,500.

Automaker Hyundai Motor stayed flat at 121,500 won, while its smaller affiliate Kia Motors lost 3.42 percent to 36,700 won. Auto parts maker Hyundai Mobis lost 3.12 percent to 217,000 won.

The local currency closed at 1,197.8 won per dollar, up 5.4 won from the previous session's close.

The secondary Kosdaq added 8.62 points, or 1.10 percent, to close at 790.58.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds added 1.6 basis points to 0.818 percent, while the return on the benchmark ten-year government bond lost 1.8 basis points to reach 0.61 percent.

BY CHEA SARAH, YONHAP [chea.sarah@joongang.co.kr]