South Korean stocks closed 1.04 percent higher Tuesday, as indications that global economies are on the path for recovery boosted investor confidence, analysts said.
The local currency inched up against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shot up 20.83 points to finish at 2,031.64. Trading volume was moderate at 397.3 million shares worth 4.24 trillion won ($4.01 billion) with gainers outnumbering decliners 426 to 391.
Analysts said global economies showing signs of recovery like in Europe or efforts to put growth first in the United States lend support to shoring up the main index, as well as continuing demand from foreigners and institutions to make bets.
"We expect to see improved manufacturing data in the eurozone and China, which will likely spur an upward momentum on the local bourse, along with optimism from a delay in the U.S.' tapering (of stimulus measures) and Beijing's eased policy plans," said Kim Kyung-duk, an analyst at Bookook Securities Co.
But fresh momentum is needed to boost more foreign inflow in the long run, possibly from the auto and IT sectors that proved sound earnings in the third quarter, Kim added.
Foreigners snapped up a net 245.9 billion won worth of local equities, with institutions buying a net 141 billion won. Retail investors unloaded a net 373.7 billion won on profit-taking.
Shares gathered ground across the board, with automakers and shipbuilders leading the rise. Hyundai Mobis, the auto parts affiliate of Hyundai Motor, soared 3.02 percent to 307,500 won, and Samsung Heavy Industries hiked 4.05 percent to 41,100 won.
State-run Korea Electric Power Corp. spiked 6.88 percent to 31,850 won after the government said it will raise the electricity costs by an average 5.4 percent starting this week.
LIG Insurance, a nonlife insurer, skyrocketed 13.41 percent to 30,450 won on media reports that its owner family, who runs LIG Group, decided to sell their entire 21 percent stake in the insurer to secure funds to compensate investors who lost money from the group's troubled arm LIG Engineering & Construction Co.
In contrast, LG Uplus, the smallest mobile carrier here, tumbled 4.04 percent to 10,700 won. Major steelmaker Hyundai Steel also sank 2.09 percent to 84,500 won.
The local currency ended at 1,056.40 won against the greenback, up 1.5 won from Monday's close, on the KOSPI's gain and the latest streak of a stronger won, dealers said. (Yonhap News)
