Kospi closes up on U.S. gains and hope for China

Finance

Published: 30 May. 2022, 17:14

Kospi closes up on U.S. gains and hope for China

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,669.66 points on Monday, up 31.61 points, or 1.20 percent, from the previous trading day. [NEWS1]

Shares ended higher for the second straight session Monday as investors scooped up stocks on bargain hunting following gains on Wall Street and hopes for economic recovery in China.

The won rose to the highest in over one month to the dollar.

The Kospi rose 31.61 points, or 1.2 percent, to close at 2,669.66.

Trading volume was moderate at 458.66 million shares worth 7.32 trillion won ($5.9 billion), with gainers outpacing decliners 712 to 154.

Institutional investors and foreigners bought a net 420.1 billion won and 355.8 billion won worth of shares each, while retail investors sold a net 803.0 billion won worth of shares.

The main Kospi index advanced as China eased its virus curbs on business activity in Shanghai and Beijing, and the U.S. stocks rebounded on hopes that inflationary pressure may have peaked out.

U.S. inflation decelerated to 6.3 percent year-on-year in April, its first slowdown in 17 months.

Technology and auto stocks were lead gainers, with Samsung Electronics rising 1.8 percent to 67,700 won and SK hynix climbing 0.9 percent to 107,000 won.

Hyundai Motor gained 1 percent to 187,500 won and its affiliate Kia advanced 0.8 percent to 83,600 won.

HMM fell 5.3 percent to 31,950 won, state-run Korea Gas Corporation declined 2 percent to 43,700 won, and SK Innovation shed 0.5 percent to 210,000 won.

SK Bioscience declined 0.7 percent to 134,500 won, while Samsung Biologics gained 1.1 percent to 843,000 won and Celltrion added 0.64 percent to 157,000 won.

The local currency ended at 1,238.60 won against the dollar, down a steep 17.60 won from the previous session's close, the highest since April 22, on the back of growing appetite for risky assets.

The Kosdaq rose 12.47 points, or 1.43 percent, to close at 886.44 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 1.3 basis points to 2.933 percent, and the yield on the benchmark 10-year government bond gained 0.07 basis points to 2.74 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]