South Korean stocks closed 0.98 percent higher Tuesday as investor sentiment buoyed on improved trade data from China, analysts said. The local currency closed higher against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 19.39 points, or 0.98 percent, to finish at 1,994.06. Trading volume was low at 252.6 million shares worth 5 trillion won (US$4.65 billion) with gainers outpacing losers 481 to 326.
Analysts said Seoul shares gathered ground as China’s export advanced 7.2 percent on-year in August, a faster pace than the 5.1 percent tallied in July. China is South Korea’s biggest trading partner.
“Foreigners continued to scoop up local shares as improved economic data from China boosted investor sentiment in South Korea,” said Park Sung-hoon, a researcher at Woori Investment & Securities Co.
“However, the growth was limited due to rising concerns over the Syrian crisis and the Federal Open Market Committee’s meeting scheduled next week,” Park added.
The U.S. Federal Reserve’s two-day regular monetary meeting, which is slated for Sept. 17-18, is anticipated to provide investors with more details on the schedule of the tapering of its quantitative easing moves.
A monetary easing move by an advanced country usually causes investors to set their sights on riskier emerging markets, while a reduction in the move sparks them to relocate their investments.
Overseas investors extended their buying rally to the 13th consecutive session with a 808 billion won net purchase. In contrast, institutions sold a net 343.2 billion won, and individuals offloaded a net 446.3 billion won.
Shipbuilders gathered ground on improved outlook for the industry, with Hyundai Heavy Industries rising 2.67 percent to 249,500 won and Daewoo Shipbuilding & Marine Engineering moving up 3.14 percent to 32,800 won.
Market behemoth Samsung Electronics gained 1.68 percent to 1,396,000 won, and top chipmaker SK hynix added 1.76 percent to 28,950 won. Flat panel maker LG Display added 0.86 percent to 29,400 won.
Brokerages also closed bullish, with Samsung Securities rising 0.96 percent to 47,450 won and KDB Daewoo Securities climbing 1.44 percent to 9,850 won. Woori Investment & Securities added 1.75 percent to 11,600 won.
In contrast, mobile carriers traded bearish with No. 1 SK Telecom losing 1.15 percent to 214,000 won and KT falling 1.36 percent to 36,350 won. LG Uplus, the smallest player, shed 1.17 percent to 12,650 won.
The local currency ended at 1,084.10 won against the greenback, up 2.70 won from Monday’s close due to the weaker-than-expected U.S. jobs report for August.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries gained 0.02 percentage point to 2.97 percent and the return on the benchmark five-year government bonds moved up 0.03 percentage point to 3.28 percent.
