Kospi closes 1.5 percent higher with eased concerns over U.S. economy

Home > Business > Finance

Kospi closes 1.5 percent higher with eased concerns over U.S. economy

Published: 07 Oct. 2024, 17:41 Updated: 07 Oct. 2024, 19:14

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,610.38 on Monday. [YONHAP]

Stocks finished over 1.5 percent higher Monday, bolstered by U.S. employment data and modest gains in chip and battery shares. The local currency sharply fell against the dollar in value.

The benchmark Kospi moved up 1.58 percent, or 40.67 points, to 2,610.38.

Trading volume was moderate at 336 million shares worth 10.2 trillion won ($7.57 billion), with gainers outpacing losers at 618 to 259.

Institutions and foreign investors together bought a net 98 billion won, while retail investors dumped a net 129.8 billion won.

"The latest U.S. employment data eased concerns over a slump in the U.S. economy, which also have acted in favor of the local stock market," KB Securities analyst Kim Ji-won said.

The U.S. Labor Department reported Friday that nonfarm payrolls increased by 254,000 in September, substantially higher than market expectations of around 147,000, boosting Wall Street shares in Friday's session.

In Seoul, chip shares enjoyed strong gains ahead Samsung Electronics' quarterly earnings announcement set for Tuesday.

Samsung rose 0.66 percent to 61,000 won while SK hynix surged 6.2 percent.

Battery manufacturers also advanced, backed by hopes of demand amid Tesla's expected reveal of its long-awaited robotaxi project.

LG Energy Solution jumped 4.09 percent to 420,000 won, and Samsung SDI added 1.66 percent to end at 367,500 won.

Financial firms and automakers also gained traction, with KB Financial climbing 5.69 percent to 87,300 won and Hyundai Motor moving up 3.13 percent to 247,000 won.

Defense shares also gained ground following renewed geopolitical tensions in the Middle East. Defense equipment maker Hanwha Aerospace jumped 4.15 percent to 351,500 won.

The local currency was trading at 1,346.7 won against the dollar at 3:30 p.m., up 13 won from the previous session. The Kosdaq gained 12,03 points, or 1.56 percent, to close at 781.01.

Bond prices, which move inversely to yield, closed lower. The yield on three-year government bonds rose 4.7 basis points to 2.824 percent, and the return on the benchmark U.S. 10-year government bond rose 6.4 basis points or 3.848 percent.

BY CHO YONG-JUN, YONHAP [cho.yongjun1@joongang.co.kr]