South Korean stocks hit a yearly high Tuesday, as investors pinned hopes on a deal among U.S. lawmakers to raise the debt ceiling, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared 20.69 points, or 1.02 percent, to finish at 2,040.96, the highest level since March last year. Trading volume was light at 222.3 million shares worth 3.96 trillion won ($3.72 billion) with gainers outpacing decliners 436 to 369.
Analysts remained positive that U.S. lawmakers will draw up a solution to resume the government operations and increase the debt limit to avoid a sovereign default before the Oct. 17 due date.
"They'll keep making political efforts until (they) reach a conclusion. Given that they know the default would have serious negative impact on other countries, the possibility of not missing the deadline is very high," said Kim Ji-hyung, an analyst from Hanyang Securities Co.
Foreigners scooped up a net 314.4 billion won worth of local equities, extending its buying binge for a 34th consecutive session since Aug. 23.
Retail and institutional investors, however, sold off a combined net 304.5 billion won.
Shares gained across the board, with machineries and IT services companies leading the climb. Doosan Infracore, a major construction equipment maker, spiked 6.07 percent to 16,600 won, and NAVER Corp. the top Internet portal provider, skyrocketed 8.97 percent to 632,000 won.
Foodmakers and shipyards finished bearish. CJ CheilJedang slumped 4.17 percent to 253,000 won, and Hyundai Merchant Marine plunged 3.95 percent to 14,600 won.
The local currency ended at 1,066.80 won against the greenback, up 4.7 won from Monday's close, on the back of the KOSPI's gain, dealers said. (Yonhap News)
