Seoul shares rally 2.01% on eurozone hopes

Korean stocks jumped 2.01 percent on Monday as unexpected improvement in U.S. employment data and renewed hopes over the troubled eurozone boosted investor confidence, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index climbed 37.20 points to finish at 1,885.88. Trading volume was moderate at 242.6 million shares worth 4.13 trillion won ($3.66 billion) with advancers outpacing decliners 562 to 242.

“Good news from the U.S. and Europe added to expectations that there’ll be more solid stimulus plans to save faltering economies,” said Lee Jae-hoon, an analyst at Mirae Asset Securities Co.

The renewed sense of optimism came as the U.S. posted a jobs report well above the forecast. It added 163,000 in nonfarm payrolls in June, beating an analysts’ projection of 64,000.

A recent remark by chief of the European Central Bank Mario Draghi, in which he swore to do anything to salvage the debt-mired region, has kept investors believing that a stronger measure will soon be put forward, Lee added.

Large-caps led the gains, with tech giant Samsung Electronics surging 4.42 percent to 1,298,000 won and chipmaker SK hynix jumping 3.82 percent to 21,750 won.

Oil refiners also ended in positive territory thanks to the hike in global crude prices. No. 1 player SK Innovation shot up 4.81 percent to 163,500 won and smaller player S-Oil hiked 3.89 percent to 101,500 won.

Shipbuilders finished bullish on the back of hopes for further measures to salvage the ailing eurozone. Hyundai Heavy Industries, the world’s biggest shipyard, advanced 4.07 percent to 243,000 won and Daewoo Shipbuilding & Marine Engineering also rose 3.94 percent to 26,350 won.

In contrast, utilities and telecom shares lost ground. KT Corp, South Korea’s No. 2 mobile carrier, shed 1.67 percent to 32,350 won following its lackluster second-quarter performance. State-run Korea Electric Power fell 2.98 percent to 24,450 won, dented by the government’s less-than-expected raise in electricity bills.

The local currency ended at 1,129.00 won against the greenback, up 5.8 won from Friday’s close, on the back of the stock market rally fueled by foreign buying, dealers said. (Yonhap News)