Seoul shares up 1.02% on U.S. gains

South Korean stocks finished 1.02 percent higher on Tuesday as investors took a cue from overnight gains in U.S markets, analysts said. The local currency rose against the U.S. dollar.

The benchmark KOSPI added 20.57 points to close at 2,039.76. Trading volume was moderate at 599 million shares worth 5.07 trillion won (US$4.47 billion) with losers outpacing gainers 439 to 384.

The local currency finished at 1,134.55 won to the greenback, up 7.05 won from Monday’s close, on a bullish stock market, dealers said.

Federal Reserve chief Ben Bernanke said Monday that the U.S. job market was still weak despite recent signs of improvement, signaling that the Fed needs to continue to prop up the economy by keeping short-term interest rates near zero.

On Monday, the Dow Jones industrial average climbed 160.90 points to 13,241.63. The Nasdaq composite index climbed 54.65 points to 3,122.57, its best finish since November 2000.

“Bernanke’s remarks boosted the U.S. stock market, which also lent support to the local stock market,” said Bae Seong-young, an analyst at Hyundai Securities.

Tech firms, shipbuilders and steelmakers led the market advance.

Market bellwether Samsung Electronics added 2.82 percent to close at a record high of 1,311,000 won, and Hynix Semiconductor gained 0.5 percent to end at 30,450 won.

Hyundai Heavy Industries, the country’s leading shipbuilder, advanced 3.12 percent to close at 330,500 won, and its smaller

rival Daewoo Shipbuilding & Marine Engineering rose 0.46 percent to 32,700 won.

POSCO, the world’s third-largest steelmaker, gained 0.92 percent to close at 385,000 won, and its smaller rival Hyundai

Steel added 1.31 percent to end at 100,500 won.

Other large-cap shares also remained in positive terrain.

Industry leader Hyundai Motor rose 0.89 percent to end at 226,000 won, and Hyundai Mobis, the country’s leading auto parts

maker, advanced 3.76 percent to finish at 289,500 won.

Korea Zinc, the world’s No. 2 zinc smelter, jumped 5.51 percent to 392,500 won.

Korea Gas also shot up 11.13 percent to end at 42,950 won on news that its Italian partner, Eni SpA, said it made a gas discovery in Mozambique. 

(Yonhap News)