South Korean stocks closed 0.64 percent higher Tuesday on abated concerns over the U.S. fiscal cliff and improving economic data, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 12.08 points to finish at 1,890.18. Trading volume was light at 367.0 million shares worth 3.62 trillion won ($3.34 billion) with advancers outnumbering decliners 481 to 330.
“Political reassurance gave a boost to investor sentiment, though it’s likely going to be temporary,” said Kim Joo-yong, an analyst at Bookook Securities Co.
U.S. markets rallied overnight after U.S. President Barack Obama said he was “confident” about settling the U.S. fiscal cliff issue with Congress.
Signs of improvement in U.S. housing data and consumer anticipation ahead of the holiday season also buoyed the main index here to rebound, Kim added. The KOSPI fell 2.29 percent last week.
Foreigners snapped an eight-day selling streak with a net buying of 56.9 billion won, with institutions opting to increase their bets worth a net 50.7 billion won. Retail investors, however, unloaded a net 126.5 billion won.
Tech blue chips drove up the KOSPI, with top-cap Samsung Electronics soaring 2.40 percent to 1,364,000 won and electronic parts maker LG Innotek jumping 4.02 percent to 85,400 won. LG Display, the world’s second-largest maker of liquid crystal display, shot up 4.04 percent to 36,050 won on a bright earnings forecast.
Shares of NHN Corp., the country’s leading Internet portal service provider, spiked 6.28 percent to 262,500 won, following media reports on a new joint mobile data business with SK Telecom, the country’s No. 1 mobile carrier.
In contrast, autos and utilities finished bearish. Kia Motors, an affiliate of top automaker Hyundai Motor, slumped 2.29 percent to 55,500 won and state-run Korea Gas Corp. dipped 3.75 percent to 82,200 won.
The local currency ended at 1,082.20 won against the greenback, up 4.8 won from Monday’s close, led by foreign buying, dealers said. (Yonhap News)
