Seoul shares up 0.28 pct on Chinese data

South Korean stocks closed 0.28 percent higher Monday as China's economic growth for the second quarter met market estimates, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 5.18 points to finish at 1,875.16. Trading volume was moderate at 326.1 million shares worth 3.1 trillion won (US$2.8 billion) with gainers outpacing losers 436 to 355.

Seoul shares gathered ground after China's National Bureau of Statistics said its gross domestic product (GDP) growth rose 7.5 percent on-year in the April-June period.

"Investors' concerns over the Chinese economy were partially abated by the country's sound economic growth for the second quarter," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co. "Steelmakers, chemical firms and shippers gathered ground accordingly."

Analysts added, however, the growth was limited as the outlook on the world's No. 2 economy still remained bleak amid the country's weak export and consumption. China is the biggest trading partner of South Korea.

"China's economy is anticipated to remain stagnant down the road as its export is dented by a weak U.S. economy," said Cho Young-hyun, a researcher at Hana Daetoo Securities Co. "China is also unlikely to come up with a policy change (to boost its economy)."

Yun Hang-jin, a researcher at Korea Investment & Securities, echoed this view, adding that a lack of policy stimulus by China amid a protracted slump in the global economy weighed down on investors' sentiment.

Foreign investors purchased more shares than they sold at a net 108 billion won. In contrast, individuals offloaded a net 62.9 billion won and institutional investors sold a net 3.4 billion won.

Carmakers closed bullish, with No. 1 player Hyundai Motor adding 1.67 percent to 212,500 won and Kia Motors moving up 1.71 percent to 59,600 won. Top auto parts maker Hyundai Mobis gained 0.2 percent to 256,000 won.

Brokerage houses traded higher, with Samsung Securities rising 0.44 percent to 46,000 won and KDB Daewoo Securities adding 0.2 percent to 9,980 won. Woori Investment & Securities moved up 1.75 percent to 11,600 won.

Logistics firms also gathered ground, with Hyundai Glovis increasing 2.2 percent to 185,500 won and Korea Line soaring by its daily permissible limit at 14.93 percent to 69,300 won.

In contrast, casino and ski resort operator Kangwon Land moved down 8.03 percent to 29,200 won on media reports that the government plans to impose a higher tax on casino operators.

Flat panel maker LG Display lost 1.06 percent to 28,100 won due to a slump in the global smartphone and television industry. Market behemoth Samsung Electronics inched up 0.08 percent to 1,313,000 won.

The local currency ended at 1,122.00 won against the greenback, up 2.50 won from Friday's close on the market outlook that the U.S. may maintain its quantitative easing down the road, dealers said.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries edged up 0.03 percentage point to 2.89 percent and the return on the benchmark five-year government bonds gained 0.04 percentage point to 3.15 percent. (Yonhap News)