Stocks rise in Seoul as China lockdown worries ease

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Stocks rise in Seoul as China lockdown worries ease

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,433.39 points on Tuesday, up 25.12 points, or 1.04 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,433.39 points on Tuesday, up 25.12 points, or 1.04 percent, from the previous trading day. [NEWS1]

 
Stocks snapped a two-session losing streak to close higher Tuesday, as worries about China's strict Covid-19 lockdown policy eased with growing expectations for an eventual reopening. The local currency rose sharply against the dollar.
 
The benchmark Kospi climbed 25.12 points, or 1.04 percent, to close at 2,433.39. Trading volume was moderate at 522.6 million shares worth 6.35 trillion won ($4.79 billion) with advancing issues outstripping decliners 659 to 196.
 
Foreigners purchased a net 61.9 billion won worth of shares and institutional investors a net 316.8 billion won, while retail investors offloaded a net 389.6 billion won.  
 
"The Chinese government is already taking a policy approach toward easing the Covid-19 restrictions, although the level of intensity may have differed," Kiwoom Securities analyst Han Ji-young said.
 
"Given that Chinese state media have mentioned the possibility of accelerating the push to ease the virus curbs, we expect the control measures to have limited impact on the local stock markets," Han said.
 
The stock markets in mainland China and Hong Kong rebounded Tuesday on optimism over Beijing's Covid-19 curbs.
 
Investors also have their eyes on what U.S. Federal Reserve Chair Jerome Powell will say later this week about the Fed's next steps in the monetary tightening after four successive rate hikes by 0.75 basis point since June.
 
In Seoul, most major stocks finished in the green, led by tech and auto blue chips. Samsung Electronics gained 0.83 percent to 60,600 won. Kia advanced 2.9 percent to 67,300 won.
 
LG Energy Solution rose 0.9 percent to 567,000 won.
 
Posco Holdings slid 0.2 percent to 293,000 won, and smelting company Korea Zinc fell 2 percent to 633,000 won.
 
The won ended at 1,326.60 won against the dollar, down 13.6 won from Monday's close.
 
The Kosdaq added 9.64 points, or 1.34 percent, to close at 727.54 points.
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 5.3 basis points to 3.723 percent, and the yield on 10-year government bonds added 6.2 basis points to 3.672 percent.

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