South Korean stocks gained 0.25 percent Wednesday on expectations the U.S. Federal Reserve may announce new stimulus measures to bolster growth, analysts said.
The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index moved up 4.58 points to 1,859.32. Trading volume was moderate at 5.38 million shares worth 3.73 trillion won ($3.19 billion), with losers outpacing gainers 423 to 381.
“Forecasts that the U.S. will push forward additional quantitative easing to stimulate its economy contributed to the overnight rally on Wall Street and helped buoy the local bourse,” Kim Sun-young, an analyst at IBK Investment & Securities said.
Lee Da-seul, an analyst at Korea Investment & Securities, added that while the KOSPI’s daily gain was hampered by lingering uncertainties over Greece’s upcoming elections, there is hope among investors the European Central Bank will come up with policies to tackle the continent’s fiscal woes.
The Greek election slated for Sunday will determine if the country stays inside the 17-member currency union or takes steps to exit it. Recent polls suggest that a left-leaning party opposed to tough austerity measures may win at the polls.
Other factors that helped the local market were signs of improvements in local business investment and a steady gain in the domestic job market numbers.
Big-cap shares in electronics and financials moved up, but autos, steel, chemicals and heavy industry lost ground.
Market bellwether Samsung Electronics jumped 1.27 percent to 1,271,000 won, with top auto parts maker Hyundai Mobis adding 1.87 percent to 272,500 won Shinhan Financial Group gained 0.13 percent to 39,300 won, with Samsung Fire & Marine Insurance jumping 2.03 percent to 201,500 won.
Leading carmaker Hyundai Motor finished flat at 238,500 won, with Kia Motors losing 0.13 percent to 78,000 won.
LG Chem, a leading manufacturer of rechargeable batteries, fell 1.74 percent to 282,000 won, and global steelmaker POSCO gave up 0.14 percent to 368,000 won.
Hyundai Heavy Industries, the world’s largest shipmaker, closed unchanged at 269,000 won, and leading refiner SK Innovation fell 1.05 percent to 141,000 won.
The local currency finished at 1,168.4 won to the U.S. greenback, up 2.1 won from Tuesday’s close.
(Yonhap News)
