Korean stocks closed 1.19 percent higher on Thursday as investor sentiment got a boost from growing optimism over the eurozone debt crisis and surprisingly high U.S. economic data, analysts said. The local currency climbed against the U.S. dollar.
The benchmark KOSPI closed up 22.58 points at 1,914.97. Trading volume was moderate at 368.4 million shares worth 6.36 trillion won ($5.59 billion), with gainers outnumbering decliners 467 to 337.
“Overall, investor sentiment was positive following strong U.S. housing data and reports on the International Monetary Fund’s plan to boost its lending capacity,” said Lee Kyung-soo, an analyst at Shinyoung Securities Co.
The National Association of Home Builders index, which gauges builders’ confidence, rose to its highest level in four years and seven months, indicating signs of recovery in the U.S. housing market.
Meanwhile, Christine Lagarde, the managing director of the IMF, was reported to be aiming to raise $500 billion for lending.
“Investors are betting global policy efforts will successfully resolve the eurozone debt crisis. Foreigners’ continued buying also reflects positive sentiment,” he said.
Foreign investors scooped up shares worth a net 705.5 billion won, extending their buying streak to an eighth session.
Shares gathered ground across the board, with techs leading the climb. Market bellwether Samsung Electronics jumped 4.08 percent to 1,072,000 won and No. 2 memory chip maker Hynix Semiconductor surged 4.16 percent to 26,300 won.
Korea Electric Power Corp., which owns the Korea East-West Power Co., gained 0.56 percent to 26,700 won after a consortium led by its affiliate was named the preferred bidder to build a 200 megawatt thermal power plant in Indonesia.
Financials were mixed. No. 3 banking group Shinhan Financial Group added 2.02 percent to 42,950 won, but its smaller rival Hana Financial Group shed 1.21 percent to 36,800 won.
Shipbuilders ended lower, with Hyundai Heavy Industries falling 1.14 percent to 303,500 won. Daewoo Shipbuilding & Marine Engineering lost 2.71 percent to 26,950 won despite clinching a $620 million deal to build a semi-submersible rig.
The local currency ended at 1,137.1 won to the greenback, up 4.7 won from Wednesday’s close, thanks to the KOSPI’s rise and recovering appetite for riskier assets, dealers said.
