Shares up on eased fiscal woes

South Korean stocks edged up 0.23 percent Wednesday as investment sentiment got a boost from emerging signs of an early settlement of the U.S. fiscal cliff, analysts said. The local currency rose sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 4.34 points to close at 1,894.04. Trading volume was heavy at 525.2 million shares worth 4.7 trillion won ($4.3 billion) with losers outnumbering advancers 479 to 337.

“Expectations are high on reports that Republicans will change their attitude to avoid a possible economic recession at the beginning of the new year due to scheduled tax hikes and spending cuts,” said Park Jung-sup, an analyst at Daishin Securities Co.

“And the upcoming year-end shopping season in the United States also acted as good news in the market.”

He said, however, that some negative factors are still too powerful for the index to be pushed up much further.

“There’s no fresh news to move the market upward or downward further,” said Park. “Eurozone finance ministers failed to reach agreement on the Greek bailout plan and the fiscal cliff issue remained unresolved.”

Consumption during the year-end shopping season is unlikely to be big enough to boost the domestic economy alongside the looming fiscal cliff, he added.

Shares closed mixed across the board. Techs finished higher, with market leader Samsung Electronics climbing 0.44 percent to 1,355,000 won and LG Electronics, South Korea’s second-largest home appliance maker, jumping 4.59 percent to 82,000 won. (Yonhap News)