South Korean stocks rallied 1.15 percent on Thursday as investor sentiment was lifted by hopes that U.S. politicians are inching closer to an agreement to avoid a budget crisis, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 22.07 points to 1,934.85. Trading volume was moderate at 382.2 million shares worth 4.77 trillion won ($4.4 billion), with gainers far outnumbering decliners 536 to 271.
“The market has been reacting sensitively to developments in the U.S. fiscal cliff issue,” said Kim Young-jun, an analyst at SK Securities Co.
“Until there are significant signs the two sides are taking steps to resolve the issue, uncertainties will continue to linger,” said Kim.
Autos led the climb on rosy prospects for overseas markets next year. South Korea’s leading automaker Hyundai Motor rose 2.67 percent to 230,500 won and its parts-making affiliate Hyundai Mobis gained 3.19 percent to 291,000 won.
Shipbuilders also ended higher with top player Hyundai Heavy Industries adding 3.45 percent to 210,000 won and Daewoo Shipbuilding & Marine Engineering surging 6.31 percent to 23,600 won.
Techs closed mixed. No. 2 chipmaker SK hynix rose 0.2 percent to 25,400 won on hopes a stabilizing DRAM price will lift the company’s fourth-quarter profit, but display giant LG Display fell 3.78 percent to 34,400 won.
The local currency ended at 1,084.1 won against the greenback, up 2.4 won from Wednesday’s close, amid easing U.S. fiscal cliff concerns, dealers said. (Yonhap News)
