Kospi up 16 points as U.S.-China tensions easeStocks closed sharply higher Thursday and the won advanced to the highest level in over a month on reports of a resumption of talks to put an end to the U.S.-China trade dispute.
Kospi surged 16.22 points, or 0.82 percent, to close at 2,004.75, breaching the psychologically significant 2,000-point mark for the first time since Aug. 1.
The sharp increase followed reports that Washington and Beijing will resume their trade negotiations next month to seek an end to their yearlong trade dispute, which has been blamed as the No. 1 reason for a steady drop in exports.
“Today, China’s commerce ministry announced that the United States and China have agreed to hold high-level trade talks in Washington in early October, which worked as a positive factor in key Asian stock markets,” said Choi Yoo-june, an analyst at Shinhan Financial Investment.
Stocks boldly rebounded Wednesday on reports of Hong Kong’s regional government withdrawing the controversial extradition bill that led to weeks of crippling protest rallies, along with Britain’s last minute efforts to avoid the country’s exit from the European Union, or Brexit, without a deal.
Exports have dropped for nine consecutive months since December amid the trade dispute between the world’s two largest economies, which are also the biggest importers of Korean goods. Both foreigners and institutions were buyers, purchasing a net 188.4 billion won and 92.4 billion won worth of shares, respectively.
Individuals offloaded a net 283.1 billion won.
Large caps were mixed at the close.
Samsung Electronics leaped 3.63 percent to 45,700 won, with chipmaker SK Hynix similarly surging 3.75 percent to 83,000 won.
Hyundai Motor, on the other hand, slipped 0.39 percent to 128,000 won, while portal operator Naver plunged 2.65 percent to 147,000 won.
The secondary Kosdaq gained 3.68 points, or 0.58 percent, to close at 632.99.
The local currency closed at 1,200.20 won against the dollar, down 8.00 won from the previous session’s close and marking the highest level since Aug. 2, when the won-dollar rate stood at 1,198.00.
Bond prices closed slightly higher. The yield on three-year bonds added 1.3 basis points to 1.264 percent, and the yield on 10-year bonds gained 0.8 basis points to 1.46 percent.
BY KIM BYUNG-WOOK, YONHAP [firstname.lastname@example.org]