Shares surge Thursday, despite concerns of a looming global recession

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,356.73 points on Thursday, up 27.78 points, or 1.19 percent, from the previous trading day. [YONHAP]

Shares finished sharply higher on Thursday, despite concerns of a looming global recession. The won rose against the dollar.

The Kospi rose 27.78 points, or 1.19 percent, to close at 2,356.73, ending its losing streak of the past five sessions.

Trading volume was moderate at 415.98 million shares worth 5.96 trillion won ($4.67 billion), with gainers outstripping decliners 655 to 210.

Foreigners and individuals sold a net 570 billion won worth of stocks, offsetting institutional buying valued at 584 billion won.

Overnight, U.S. stocks rallied, boosted by strong earnings from some major companies and positive consumer-confidence data.

Data released Wednesday by the Conference Board showed that consumer confidence in the U.S. economy rose to an 8-month high of 108.3, up from the 101.4 registered in November.

Concerns about a global recession, however, are mounting, with the U.S. Federal Reserve reaffirming its hawkish stance in its fight against inflation.

Last week, the Fed vowed to continue its monetary tightening policy until inflation is brought under control.

The Bank of Japan earlier this week said it will raise 10-year government bond yields to around 0.5 percent from the previous upper limit of 0.25 percent, a decision seen as a switch to monetary tightening after a decade of extraordinary stimulus.

Shares advanced across the board.

Samsung Electronics rose 1.9 percent to end at 59,100 won and SK hynix added 1.54 percent to 79,200 won.

Hyundai Motor climbed 1.6 percent to 158,500 won and its smaller sister company Kia advanced 2.42 percent to 63,500 won.

Among decliners, battery maker LG Energy Solution shed 1.15 percent to 471,500 won and Korea Electric Power Co. shed 0.46 percent to 21,750 won.

The won closed at 1,276.20 won against the dollar, down 9.5 won from the previous session's close.

The Kosdaq climbed 9.32 points, or 1.32 percent, to close at 715.02 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 8.0 basis points to 3.566 percent, and the yield on the benchmark 10-year government bonds decreased 1.7 basis points to 3.671 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]