South Korean stocks closed 0.79 percent higher Thursday, as a stabilizing yen offset concerns over the negative impact the currency may bring to the local economy, analysts said. The Korean won inched down against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 15.55 points to finish at 1,986.81. Trading volume was moderate at 309.5 million shares worth 4.43 trillion won (US$3.96 billion) with gainers outstripping losers 445 to 369.
"The yen has been stabilizing at the 102 level, at least for now, which we believe prompted foreigners to opt for risky bets, pulling up the KOSPI," said Kim Hyung-ryeol, a senior strategist at Kyobo Securities Co.
Although the local stock market needs fresh momentum based on improved fundamentals like better corporate results, a notable return of foreign net purchase is convincing enough to expect further upward moves, Kim added.
Overseas investors scooped up a net 292.6 billion won, with institutions buying a net 182.1 billion won.
Most large-cap shares finished bullish. Market bellwether Samsung Electronics climbed 0.53 percent to 1,509,000 won, with auto parts maker Hyundai Mobis jumping 2.66 percent to 270,500 won.
No. 4 lender Shinhan Financial hiked 3.15 percent to 39,250 won and leading life insurer Samsung Life Insurance soared 2.38 percent to 107,500 won.
Shares of NHN Corp., top Internet portal service provider, spiked 7.51 percent to 315,000 won on foreign buying in spite of a probe launched by the anti-trust watchdog on an unfair trading allegation.
But telecom issues lost ground. Top mobile carrier SK Telecom slumped 3.21 percent to 211,000 won, with LG Uplus, the smallest rival, tumbling 5.56 percent to 11,900 won.
Daewoo Shipbuilding & Marine Engineering, a major shipbuilder, plunged 10.49 percent to 25,600 won after it said its first-quarter earnings halved from a year ago.
The local currency ended at 1,116.40 won against the greenback, down 1.9 won from Wednesday's close, largely due to more demand for the dollar amid growing hopes for a recovery of the world's largest economy, dealers said.
Bond prices, which move inversely to yields, closed unchanged.
The yield on three-year Treasuries held steady at 2.56 percent and the return on the benchmark five-year government bonds stood flat at 2.65 percent. (Yonhap News)
