Stocks jump ahead of U.S. election, FOMC meeting

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Stocks jump ahead of U.S. election, FOMC meeting

 
A screen shows the closing figure for the Kospi in a trading room in Hana Bank in Jung District, central Seoul, on Monday. [NEWS 1]

A screen shows the closing figure for the Kospi in a trading room in Hana Bank in Jung District, central Seoul, on Monday. [NEWS 1]

 
Seoul stocks rallied Monday ahead of the upcoming U.S. presidential election and the Federal Open Market Committee (FOMC) meeting. The won rose against the dollar.
 
The Kospi rose 33.01 points, or 1.46 percent, to close at 2,300.16.
 
Trading volume was moderate at about 665 million shares worth around 8.4 trillion won ($7.4 billion), with gainers outnumbering losers 683 to 165.
 
Foreigners bought a net 49 billion won, and institutions purchased a net 49 billion won, while retail investors sold a net 108 billion won.
 
Stocks fared bullish after the previous session's 2.56 percent plunge.
 
Amid the global Covid-19 resurgence and the U.S. election uncertainties, investors pinned hopes on a dovish signal from the FOMC, which has repeatedly said there is more policy room to support the world's largest economy.
 
Investors are paying keen attention to the results of the U.S. presidential election Tuesday (U.S. time).
 
"Volatility in the local financial markets is increasingly expanding ahead of the U.S. presidential election and probably will do so after the election too, depending on the voting results," Kiwoom Securities analyst Seo Sang-young said.
 
Earlier in the morning, Bank of Korea Gov. Lee Ju-yeol said the central bank may "take market-stabilizing measures in a timely fashion" if the election volatility turns out to be excessive.
 
In Seoul, most large caps closed higher.
 
Samsung Electronics added 1.41 percent to 57,400 won, but chipmaker SK hynix shed 0.38 percent to 79,600 won.
 
Pharmaceutical firm Samsung Biologics gained 2.35 percent to 698,000 won, and Celltrion advanced 1.45 percent to 244,500 won after signing a 210 billion-won ($185 million) deal to supply a Covid-19 diagnostic kit in the United States.
 
Naver lost 1.55 percent to 285,500 won, while its rival Kakao moved up 1.36 percent to 334,500 won.

 
Chemical maker LG Chem rose 1.96 percent to 623,000 won, but rechargeable battery maker Samsung SDI dropped 0.45 percent to 440,000 won. 
 
Hyundai Motor jumped 3.65 percent to 170,500 won, and steelmaker Posco advanced 3.85 percent to 216,000 won.
 
The local currency closed at 1,133.6 won per dollar, down 1.5 won from the previous session's close.
 
The Kosdaq gained 10.3 points to close at 802.95.  
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds rose 3.6 basis points to 0.972 percent, and the return on 10-year bonds rose 5.1 basis points to close at 0.87 percent.
 
BY YONHAP, LEE JEE-YOUNG   [lee.jeeyoung1@joongang.co.kr] 

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