Korean stocks jumped 1.56 percent Wednesday as investors scooped up local shares on hopes for U.S. stimulus measures and eased eurozone woes, analysts said. The local currency climbed against the U.S. dollar.
The benchmark Korea Composite Stock Price Index gained 30.03 points to 1,950.03, snapping a two-session losing streak.
Trading volume was heavy at 693.3 million shares worth 5.17 trillion won ($4.59 billion), with gainers far outstripping losers 541 to 278.
“Led by optimism about a possible U.S. stimulus plan and an envisioned court ruling in Germany, a 460 billion won program buying pushed up the main index,” said Kim Yong-goo, an analyst from Samsung Securities Co.
The U.S. Federal Reserve is holding a two-day meeting until Thursday and investors anticipated that the Fed will deliver economic stimulus, including a fresh round of quantitative easing.
Germany’s top court is expected to approve a eurozone bailout fund, which enables the European Central Bank to purchase soaring bonds of ailing member nations.
“All these positive anticipations raise investors’ appetite for risky assets,” said Kim.
Institutions turned to net buyers to purchase a total of 436.9 billion won worth of shares, and foreigners snapped up a net 67.8 billion won worth of shares.
Most shares ended higher, led by big-cap exporters.
World’s biggest smartphone maker Samsung Electronics went up 3.03 percent to 1.294 million won ahead of the release of Apple’s iPhone 5. SK Hynix, the world’s No. 2 memory chipmaker, gained 1.14 percent to 22,200 won. (Yonhap News)
