Stocks jump 2% despite U.S. election uncertainties
Stocks jumped over 2 percent Thursday on massive foreign buying amid uncertainties over the U.S. presidential election results. The won rose against the dollar.
The Kospi rose 56.47 points, or 2.4 percent, to close at 2,413.79.
Trading volume was high at about 691 million shares worth some 12.4 trillion won ($11 billion), with gainers outnumbering losers 713 to 141.
Foreigners bought a net 1.13 trillion won, the largest daily sum since July 28, while retail investors sold a net 1.62 trillion won. Institutions purchased a net 485 billion won.
Stocks climbed above the 2,400 level, as investors rushed for tech and bio stocks as U.S. election uncertainties continued.
Overnight, U.S. stocks finished sharply higher. The tech-heavy Nasdaq composite spiked up 3.85 percent Wednesday (New York time). The Dow Jones Industrial Average rose 1.34 percent, and the S&P 500 advanced 2.2 percent.
The Kospi gained for a fourth consecutive session, with hopes that the stocks will advance after the U.S. election.
"It seems like the markets are projecting investor hopes that the United States will soon wrap up the election event and manage to remove some policy complications related to the [stimulus]," Kyobo Securities analyst Kim Hyung-ryeol said.
However, local analysts noted that the U.S. election uncertainties may not ease in the short term.
Improved third-quarter earnings by major tech and financial firms also fueled hopes for an economic rebound from the pandemic.
In Seoul, most large caps closed higher.
Samsung Electronics jumped 3.08 percent to 60,300 won, and chipmaker SK hynix added 3.49 percent to 86,100 won.
Pharmaceutical firm Samsung Biologics spiked 6.55 percent to 781,000 won, and Celltrion rose 0.55 percent to 272,000 won.
Internet portal Naver edged up 0.17 percent to 299,000 won, with its rival Kakao up 0.97 percent to 363,000 won.
Chemical maker LG Chem surged 4.15 percent to 677,000 won, and Hyundai Motor advanced 2.04 percent to 175,000 won.
Steelmaker Posco hiked 3.65 percent to 227,000 won.
The Kosdaq rose 17.83 points, or 2.16 percent, to close at 844.8.
The local currency closed at 1,128.2 won per dollar, down 9.5 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year bonds lost 2.8 basis points to close at 0.928 percent, and the return on 10-year bonds shed 12.8 basis points to close at 0.76 percent.
BY YONHAP, LEE JEE-YOUNG [firstname.lastname@example.org]