Stocks extend winning streak to fourth day, won surges against dollar

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,399.04 points on Wednesday, up 25.37 points, or 1.06 percent, from the previous trading day. [YONHAP]

Stocks extended their winning streak to a fourth day Wednesday with investors paying keen attention to the U.S. midterm election results. The won surged against the dollar.

The Kospi gained 25.37 points, or 1.06 percent, to close at 2,424.41 points.

Trading volume was moderate at about 675 million shares worth some 9.2 trillion won ($6.7 billion), with gainers outnumbering losers 575 to 272.

Institutions bought a net 348 billion won and foreigners scooped up 413 billion won, while retail investors offloaded 777 billion won.

After opening a tad higher, the Kospi increasingly gained ground throughout the session.

Investors are speculating that the U.S. midterm election results may affect the currency market in particular.

The prospect is that the Republicans are likely to control at least one chamber of Congress, helping to erase some market uncertainties for the time being.

The U.S. consumer prices index report for October due out Thursday local time will provide clues as to whether the Fed's hawkish interest rate hikes have helped tame the decades-high inflation and whether it will seek another 0.75 percentage-point hike or less in its next December policy meeting.

"The ascent of the Korean won and continued buying by foreign investors helped buoy Korean stocks," said Lee Kyung-min, an analyst at Daeshin Securities.

In Seoul, Samsung Electronics grew 0.32 percent to 62,000 won, and SK hynix increased 1.71 percent to 89,200 won.

Hyundai Motor lost 0.29 percent to 169,500 won, and its smaller affiliate Kia slipped 0.15 percent to 67.400 won.

Kakao climbed 1.17 percent to 52,100 won while Naver rose 1.41 percent to 180,000 won.

LG Chem swelled 3.47 percent to 715,000 won.

The won closed at 1,364.8 won against the dollar, down 20.1 won from the previous session's close.

The Kosdaq gained 1.27 points, or 1.83 percent, to close at 714.60 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds decreased 8.7 basis points to 4.075 percent, and the yield on 10-year government bonds fell 8.3 basis points to 4.131 percent.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]