South Korean stocks closed 0.43 percent higher Tuesday, driven by foreign and institutional buying amid widening political uncertainties over the U.S. presidential race, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index advanced 8.06 points to finish at 1,899.58. Trading volume as light at 317.6 million shares worth 3.20 trillion won ($2.92 billion) with gainers outstripping losers 485 to 313.
“Political uncertainties over how the U.S. presidential election will turn out continue to overshadow the market,” said Jeon Ji-won, an analyst at Kiwoom Securities Co.
As the issue of a fiscal cliff will be in the hands of the succeeding U.S. administration, investor sentiment will likely sit on the sidelines before any policy changes are made, Jeon added.
As for a short-term market mover, better-than-expected U.S. data for private consumption overnight lent support to stemming a 7-day foreign selloff.
Foreigners scooped up a net 106.4 billion won worth of shares, with institutions buying a net 25.1 billion won.
Auto and chemical shares pushed up the main index. No. 1 auto maker Hyundai Motor gained 2.51 percent to 225,000 won and LG Chem rose 1.20 percent to 294,000 won, following the country’s forecast-beating September cross-border trade surplus of $6.07 billion, weathering the recent currency appreciation.
In contrast, steelmakers and shipyards finished bearish. Local zinc smelter Korea Zinc shed 2.85 percent to 443,000 won and Hyundai Mipo Dockyard sank 0.84 percent to 118,500 won.
