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Kospi jumps nearly 2% on surprising U.S. industry data

Published: 03 Dec. 2024, 16:49

KIM JU-YEON
[email protected]

A screen in Korea Exchange's offices in Yeouido, western Seoul, shows the Kospi closing at 2,500.10 points on Tuesday, up 45.62 percent, or 1.86 points, from the previous trading session. [NEWS1]

Shares soared nearly 2 percent Tuesday on better-than-expected U.S. industry data and the limited market impact of Washington's export curbs targeting China. The won fell in value against the dollar.

The Kospi added 45.62 points, or 1.86 percent, to close at 2,500.1. The Kosdaq rose 14.96 points, or 2.21 percent, to 690.80.

Trade volume was moderate at 314.4 million shares worth 8.87 trillion won ($6.32 billion), with winners outpacing losers 733 to 163.

Foreigners bought a net 538.8 billion won, while individuals dumped a net 840 billion won. Institutions bought a net 284.1 billion won.

Overnight, the United States unveiled an export control package, which includes restrictions on the export of high bandwidth memory chips to China.

But local chipmakers are expected to be largely unaffected by the move given their small interest in the Chinese market.

Investors cheered the better-than-expected U.S. manufacturing purchasing managers index (PMI) for November.

"All possible negative factors were significantly reflected for the moment," said Han Ji-young, a researcher at Kiwoom Securities. The analyst said the PMI data also signals better performances by exporters.

Tech firm Samsung Electronics remained unchanged at 53,600 won, while chipmaker SK hynix added 3.84 percent to 164,900 won.

Financial shares closed sharply higher, with KB Financial adding 4.98 percent to 101,200 won and Shinhan Financial climbing 4.64 percent to 56,400 won.

Korea Zinc shot up 9.28 percent to 1,542,000 won amid the company's management dispute. Defense firm Hanwha Aerospace jumped 5.45 percent to 338,500 won.

Internet portal operator Naver gained 2.7 percent to 209,000 won while Kakao rose 1.9 percent to 42,950 won.

Carmakers closed mixed, with Hyundai Motor falling 0.69 percent to 214,500 won while its sister Kia added 4.03 percent to 98,000 won.

The local currency was trading at 1,402.9 won against the greenback at 3:30 p.m., up 1.6 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 1.9 basis points to 2.587 percent, and the return on the benchmark 10-year U.S. government bonds rose 1.5 basis points to 4.186 percent.

BY KIM JU-YEON, YONHAP [[email protected]]