Seoul shares up 0.57 pct on abated U.S. woes

South Korean stocks closed 0.57 percent higher Wednesday as the U.S. is anticipated to keep its economic stimulus for the time being, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 10.88 points to finish at 1,923.91. Trading volume was moderate at 357.1 million shares worth 4.06 trillion won ($3.62 billion) with gainers outpacing losers 447 to 338.

The Atlanta Federal Reserve president, Dennis Lockhart, implied Tuesday the U.S. may seek to reduce its quantitative easing moves later than September.

"The abated woes over a cut in U.S. quantitative easing boosted investor sentiment here," said Kim Sun-young, a researcher at IBK Investment & Securities Co. "However, the market gain was limited as investors sought after profit-taking following a sharp increase tallied in the previous trading session."

"Seoul shares are expected to gather ground further following the release of the eurozone's economic data for the second quarter this week," Kim added. The eurozone economy has posted a minus growth for the sixth quarter at end-March.

Foreigners bought more shares than they sold at a net 354.5 billion won. In contrast, institutions and individuals offloaded a net 320.9 billion won and 35.2 billion won, respectively.

Tech shares closed bullish, with No. 1 player Samsung Electronics rising 0.78 percent to 1,300,000 won and top chipmaker SK hynix adding 3 percent to 29,150 won. Flat panel maker LG Display gained 1.04 percent to 29,050 won.

Logistics firms also gathered ground, with Hyundai Merchant Marine adding 4.54 percent and CJ Korea Express moving up 0.99 percent. Hanjin Shipping rose 0.6 percent to 8,350 won.

In contrast, brokerage houses traded lower, with Samsung Securities losing 0.22 percent to 45,550 won and KDB Daewoo Securities falling 0.71 percent to 9,750 won. Woori Investment & Securities shed 0.42 percent to 11,750 won.

Mobile carriers traded mixed, with leading SK Telecom rising 2.16 percent to 213,000 won and KT adding 0.42 percent to 35,450 won. On the other hand, LG Uplus, the smallest player, shed 0.75 percent.

Leading carmaker Hyundai Motor added 2.64 percent to 233,000 won and its smaller affiliate Kia Motors gained 1.3 percent to 62,500 won. Top auto parts maker Hyundai Mobis lost 0.37 percent to 266,000 won.

The local currency ended at 1,118.70 won against the greenback, down 3.40 won from Tuesday's close, on rising demand for the U.S. dollar in the global market, dealers said.

The local stock markets will be closed Thursday to celebrate Liberation Day, which commemorates Korea's independence from Japan's colonial rule.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries moved up 0.05 percentage point to 2.97 percent and the return on the benchmark five-year government bonds also gained 0.05 percentage point to 3.28 percent. (Yonhap News)