Falling oil prices, economic recovery hopes boost market

Finance

Published: 04 Apr. 2022, 17:46 Updated: 04 Apr. 2022, 17:59

Falling oil prices, economic recovery hopes boost market

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,757.90 points on Monday, up 18.05 points, or 0.66 percent, from the previous trading day. [YONHAP]

Stocks rose on Monday as falling oil prices and signs of a global economic recovery shored up investor sentiment despite concerns over the United State's potential rate hikes and the Ukraine crisis. The won rose against the dollar.

The benchmark Kospi added 18.05 points, or 0.66 percent, to close at 2,757.90 points.

Trading volume was heavy at around 1 billion shares worth some 9.6 trillion won ($7.9 billion), with gainers outnumbering losers 603 to 243.

Foreign investors picked up shares worth 23.2 billion won and institutions bought 13.0 billion won, offsetting individuals' selling of 1.5 billion won of stocks.

Seoul shares opened lower, as investors considered lingering geopolitical uncertainties surrounding Ukraine. But the index bounced back on the hope for China's envisioned economic stimulus package, as well as solid gains in U.S. employment.

Falling global oil prices also buoyed market sentiment, as the United States vowed to release the largest ever oil reserves of 1 million barrels per day for the next six months.

International benchmark Brent crude fell to a two-week low of $104.39 a barrel Friday, and Dubai crude, Korea's benchmark, stood at $101.61 per barrel, the lowest since March 15.

"Investors appear to have focused on signs of an economic recovery from both China and the United States, though they remain cautious over the Federal Reserve's possible rate hikes amid high inflation," Kiwoom Securities analyst Kim Se-heon said.

Samsung Electronics rose 0.29 percent to 69,300 won and chipmaker SK hynix advanced 0.86 percent to 117,000 won.

Battery maker LG Energy Solution soared 2.45 percent to 438,500 won, and LG Chem climbed 0.57 percent to 526,000 won.

Korean Air Lines jumped 2.4 percent to 31,950 won, and budget carrier Jeju Air spiked 6.46 percent to 23,900 won.

The local currency closed at 1,214.40 won against the dollar, down 1.1 won from the previous session's close.

The Kosdaq advanced 6.75 points, or 0.72 percent, to close at 947.32 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 5.8 basis points to 2.841 percent, and the yield on the benchmark 10-year government bond advanced 4.6 basis points to 2.38 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]