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Kospi jumps 1.57% on the back of U.S. inflation data

Published: 23 Dec. 2024, 17:27

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,442.01 points on Dec. 23, up 1.57 percent, or 37.86 points, from the previous trading session. [NEWS1]

Shares gained more than 1 percent Monday on the back of weaker-than-expected U.S. inflation data for November, along with eased concerns over a possible government shutdown in the world's top economy.

The won depreciated against the greenback, breaching the 1,450 won level for the third straight session.

The benchmark Kospi added 37.86 points, or 1.57 percent, to close at 2,442.01. The Kosdaq rose 10.93 points, or 1.64 percent, to close at 697.24.

The trade volume was moderate at 415.4 million shares worth 7.18 trillion won ($4.94 billion), with winners outnumbering losers 717 to 185.

Foreigners bought a net 144.8 billion won, while individuals dumped a net 674 billion won. Institutions also scooped up a net 434.9 billion won.

Investors' sentiment, which was previously hurt by U.S. Federal Reserve Chair Jerome Powell's remark that the central bank will seek just two additional rate cuts next year, improved after the personal consumption expenditure rose by a lower-than-expected 2.4 percent on-year in November.

Abated concerns over a possible government shutdown in the U.S. following the last-minute passage of a related bill Friday, also lent support to investors' appetite for riskier assets.

"The local market took a breather amid signs of resilience in the U.S. market," Kiwoom Securities analyst Han Ji-young said.

In Seoul, Samsung Electronics rose 0.94 percent to 53,500 won and SK hynix added 0.65 percent to 169,600 won.

Steelmakers traded higher as well, with Korea Zinc moving up 11.2 percent to 1,102,000 won and Posco rising 0.96 percent to 262,000 won.

Automotive shares closed mixed, with Hyundai Motor increasing 2.14 percent to 215,000 won while Kia lost 0.3 percent to 100,900 won. Hyundai Mobis finished unchanged at 244,000 won.

SBS shot up to the daily permissible limit of 30 percent, reaching 26,000 won, after the company announced its contract to supply entertainment content to Netflix.

The local currency was quoted at 1,452 won against the dollar at 3:30 p.m., up 0.6 won from the previous session.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields fell by 1.5 basis points to 2.615 percent, while the return on the benchmark 10-year U.S. government bonds fell by 6.0 basis points to 4.515 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]