Kospi rises 1.23% as U.S. inflation data prompts foreign buy-up

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Kospi rises 1.23% as U.S. inflation data prompts foreign buy-up

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,527.49 points on Jan. 16, up 30.69 points, or 1.23 percent, from the previous trading session. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,527.49 points on Jan. 16, up 30.69 points, or 1.23 percent, from the previous trading session. [NEWS1]

 
Stocks finished over 1 percent higher Thursday as big-cap tech shares advanced on foreign buying driven by cooler-than-expected U.S. inflation data.
 
The local currency rose in value against the greenback.
 

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The Kospi added 30.68 points, or 1.23 percent, to close at 2,527.49.
 
Trade volume was moderate at 436.3 million shares worth 9.02 trillion won ($6.2 billion), with winners outnumbering losers 596 to 281.
 
Foreigners bagged in 498.2 billion won worth of local shares to offset retail investors' 569.4 billion won sell-off.
 
Analysts said the Kospi gained ground as foreign investors' sentiment improved after the latest U.S. consumer price index showed signs of slowing inflation, reinforcing bets that the Federal Reserve will continue with its monetary easing cycle this year.
 
Overnight, major U.S. indexes also rallied as blue chip tech shares gained ground, with Tesla soaring 8 percent, Nvidia rising 3.4 percent and Meta Platforms up 3.85 percent.
 
The Dow Jones Industrial Average advanced 1.65 percent, the S&P 500 jumped 1.83 percent, and the tech-heavy Nasdaq Composite surged 2.45 percent.
 
The Bank of Korea's (BOK) rate freeze, however, did not have much impact on the stock market.
 
Earlier in the day, the BOK held its key rate unchanged at 3 percent in the wake of the weak local currency and uncertainties stemming from the incoming Donald Trump administration.
 
In Seoul, Samsung Electronics climbed 1.12 percent to 54,300 won, and its chipmaking rival SK hynix shot up 5.95 percent to 210,000 won.
 
Bio and financial shares also gained ground.
 
Samsung Biologics advanced 2.16 percent to 1.04 million won, and Meritz Financial jumped 2.87 percent to 111,200 won.
 
HD Hyundai Electric also surged 3.6 percent to 417,500 won.
 
In contrast, heavy industry shares lost ground.
 
Shipbuilder HD Hyundai Heavy lost 0.48 percent to 312,500 won, and defense and aerospace firm Hanwha Aerospace dropped 0.25 percent to 394,000 won.
 
The local currency was trading at 1,456.7 won against the greenback at 3:30 p.m., down 4.5 won from the previous session.
 
Bond prices, which move inversely to yields, closed higher. Three-year government bond yields fell 4.3 basis points to 2.626 percent, while the return on the benchmark 10-year U.S. government bonds dropped by 13.5 basis points to 4.654 percent.

BY SHIN HA-NEE, YONHAP [[email protected]]
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