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An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday (Yonhap) |
South Korean stocks closed 0.93 percent higher Monday, after US data signaling cooling inflation fueled investor appetite for risky bets. The local currency rose against the US dollar.
The benchmark Korea Composite Stock Price Index advanced 24.26 points to 2,632.58. Trading volume was at 447.5 million shares worth 15.5 trillion won ($12.2 billion), with gainers outnumbering decliners 712 to 178.
"The slower-than-expected in US personal consumption expenditures price index raised hopes for a 'Goldilocks' economy," Choi Yu-joon, an analyst at Shinhan Investment & Securities Co., said, referring to the term that describes an economy with steady growth without a dramatic contraction or expansion.
"The probability of the Federal Reserve's interest rate hike in September came down to 20 percent, easing the tightening pressure," Choi said.
All three US major stock indexes finished higher Friday, after the PCE price index, an inflation gauge favored by the Fed, showed it rose 3 percent in June from a year earlier, the smallest rise in more than two years.
It also marked a drop from May's 3.8 percent, showing a downtrend that indicated the Fed's aggressive interest rate hikes are working to pull inflation down to the 2 percent target range.
In Seoul, battery and steel stocks closed higher. Top battery maker LG Energy Solution rose 3.32 percent to 560,000 won. Steel giant Posco Holdings shot up 3.72 percent to 642,000 won.
Internet portal operator Naver jumped 7.58 percent to 227,000 won on growing anticipation surrounding HyperCLOVA X, its hyperscale artificial intelligence service, set to be unveiled next month.
Leading energy company SK Innovation surged 13.98 percent to 216,000 won after the market outlook for a turnaround in the next quarter earnings.
Tech behemoth Samsung Electronics fell 1.13 percent to 69,800 won. Chip giant SK hynix lost 3.59 percent to 123,400 won.
Autos finished in the red. Hyundai Motor fell 0.41 percent to 196,000 won, and Kia shed 1.78 percent to 82,700 won.
The stock markets experienced a brief disruption shortly after the opening bell when an unidentified system error at Koscom Corp. brought all stock trading to a halt for about 10 minutes.
The Korean won ended at 1,274.60 won against the US dollar, up 2.4 won from Friday's close. (Yonhap)
