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THE INVESTOR] South Korean stocks ended higher on Sept. 21, on the Japanese central bank’s decision to freeze its key rate. The local currency rose against the US dollar.
The benchmark KOSPI climbed 10.28 points, or 0.51 percent, to 2,035.99.
The Bank of Japan kept its key rate unchanged at minus 0.1 percent.
“The BOJ’s decision pushed up the benchmark index as investors were relieved from the bank’s decision to keep its key rate unchanged,” said Kim Ye-eun, an analyst at LIG Investment & Securities.
If the BOJ cuts the policy rate, South Korean exporters have less room in terms of prices overseas compared with their Japanese rivals. A stronger won results in a decrease in the exporters’ overseas earnings when converted into the dollar.
Lee Kyung-min, an analyst at Daishin Securities, also said the BOJ’s decision had a positive influence on the local bourse. Still, he said the market could be volatile in case the US raises its key rate this week.
Large-cap stocks were mixed across the board.
Market bellwether Samsung Electronics gained 0.44 percent to 1,592,000 won and the state-run Korea Electric Power Corp. was up 1.54 percent to 59,500 won.
Meanwhile, top automaker Hyundai Motor was down 0.36 percent to 138,000 won, and leading cosmetics maker AmorePacific lost 1.03 percent to 386,000 won.
The local currency was trading at 1,120.10 won against the US dollar, up 0.50 won from the previous session’s close.
(
theinvestor@heraldcorp.com)
