Stocks rise 1.73 percent on low U.S. inflation reading

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Stocks rise 1.73 percent on low U.S. inflation reading

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,523.78 points on Thursday, up 42.90 points, or 1.73 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,523.78 points on Thursday, up 42.90 points, or 1.73 percent, from the previous trading day. [NEWS1]

 
Stocks jumped 1.73 percent Thursday, taking a cue from an overnight Wall Street rally after softer-than-expected U.S. inflation data helped ease worries about a dramatic rate increase by the Federal Reserve, analysts said. The local currency gained ground against the dollar.
 
The Kospi advanced 42.90 points to 2,523.78. Trading volume was moderate at 495.5 million shares worth 9.39 trillion won ($7.26 billion), with advancing stocks far outstripping decliners 771 to 111. 
 
"The U.S. rally that came with a rebound in tech stocks amid the expectations that inflation may peak out will have a positive impact on the South Korean stock market," Seo Sang-young, an analyst at Mirae Asset Securities, said.
 
The U.S. consumer price index (CPI) rose 8.5 percent in July, down from the 9.1 percent gain for June that marked the highest in four decades. It was also lower than market expectations.
 
The easing of the July U.S. inflation sent Wall Street rallying on Wednesday, with the S&P 500 hitting a three-month high, the Nasdaq rising 2.89 percent and the Dow Jones Industrial Average gaining 1.63 percent.
 
In Seoul, foreigners scooped up a net 136.7 billion won worth of stocks and institutions a net 467.1 billion won. Retail investors offloaded a net 602.1 billion won.
 
Samsung Electronics advanced 1.35 percent to 59,900 won, and LG Energy Solution jumped 3.06 percent to 472,000 won.
 
LG Chem rose 1.54 percent to 658,000 won, and Posco Holdings soared 3.42 percent to 257,000 won.
 
Domestic business-focused stocks fell. KT was down 0.8 percent to 38,150 won, and Samsung Fire & Marine Insurance slipped 0.7 percent to 202,000 won amid the recovery underway in Korea after record rainfalls.
 
The local currency ended at 1,303.00 won against the dollar, down 7.4 won from Wednesday's close.
 
The Kosdaq advanced 11.88 points, or 1.45 percent, to close at 832.15 points.
 
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds dropped 1.9 basis points to 3.14 percent, and the yield on the 10-year government bond advanced 0.4 basis points to 2.79 percent.

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