Shares up on stimulus hopes

Korean stocks closed 0.23 percent higher on Tuesday as hopes for further stimulus measures outweighed concerns over slowing growth in major economies, analysts said. The local currency gained against the U.S. dollar.

After opening lower, the benchmark Korea Composite Stock Price Index climbed 4.17 points to 1,821.96. Trading volume was moderate at 406.5 million shares worth 4.7 trillion won ($4.1 billion), with decliners outnumbering gainers 439 to 356.

“Despite the International Monetary Fund’s growth outlook downgrade and weak U.S. economic data, investors scooped up stocks on hopes the U.S. Fed may signal quantitative easing,” said Lim Dong-lak, an analyst at Hanyang Securities Co.

On Monday, the IMF cut its 2013 forecast for global growth to 3.9 percent from a 4.1 percent projection made in April. U.S. retail sales data fell for the third straight month, stoking worries on the world’s largest economy.

“Whether Bernanke’s remarks will live up to investor expectations will likely decide the course of local stocks,” Lim said. 

(Yonhap News)