South Korean stocks finished 1.62 percent higher on Tuesday, led by oil refiners and shipyards, as European leaders' move to shore up the region's banking sector boosted investor confidence, analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose
28.58 points to 1,795.02. Trading volume was moderate at 393 million shares worth 7.04 trillion won (US$6.05 billion) with gainers leading losers 631 to 214.
"Market sentiment was improved as policymakers began to show their coordinated actions," said Kim Hyoung-ryoul, an analyst at Kyobo Securities Co.
"Investors also snapped up shares before the meeting among European finance ministers and the group of 20 countries' meeting next month, on expectations for global collaboration."
The KOSPI hit an intra-day high of 1,811.14 at one point in morning trade, touching above the psychologically significant 1,800 level for the first time in 19 days.
On Sunday, French and German leaders said they will help rescue the troubled eurozone banking sector, which fanned eurozone optimism and sent U.S. stocks higher on Monday.
Oil refiners gained ground, tracking the advance in global crude oil prices. SK Innovation shot up 3.19 percent to 145,500 won and S-Oil surged 3.87 percent to 102,000 won.
Shipyards extended their previous day's gains. Hyundai Heavy Industries, the world's biggest shipbuilder, added 2.82 percent to 310,000 won and its affiliate Hyundai Mipo Dockyard spiked 8.87 percent to 110,500 won.
Tech shares were mixed. Chipmaking giant Hynix Semiconductor advanced 1.37 percent to 22,250 won but LG Electronics fell 2.5 percent to 74,000 won on worries about its third-quarter earnings.
The local currency closed at 1,164.5 won to the greenback, up
6.9 won from Monday's close, as offshore investors snapped up local shares, dealers said.
Bond prices, which move inversely to yields, closed flat. The yield on three-year Treasuries held steady at 3.48 percent and the return on the benchmark five-year government bonds also remained unchanged 3.61 percent.
(Yonhap News)
