Korean stocks closed 0.62 percent higher to a six-month high on Monday as encouraging signs in the U.S. economy and global economic optimism boosted large-cap exporters, analysts said. The local currency rose against the U.S. dollar.
The benchmark KOSPI rose 2.56 points to 2,047, the highest close since Aug. 3, 2011. Trading volume was moderate at 541 million shares worth 4.74 trillion won ($4.22 billion) with losers leading gainers 434 to 385.
“Foreign investors bought more local stocks in the last week than they sold earlier this month, alleviating worries that they may leave the local bourse and helping continue the rally,” said Kwak Joong-bo, an analyst at Samsung Securities Co.
The Seoul bourse traced gains in the U.S. stock markets, which staged one of the best weekly gains last week.
Even as reports showed that U.S. consumer sentiment dropped this month, three major U.S. stock indices surpassed milestones, boosting optimism about one of the biggest trading partners for South Korea.
Large-cap exporters of tech, auto vehicles and steel were the biggest winners. Market heavyweight Samsung Electronics climbed 1.78 percent to 1,260,000 won and top automaker Hyundai Motor added 0.45 percent to 224,000 won. Leading steelmaker POSCO rose 0.63 percent to 397,500 won.
Mobile operators gained ground on speculations that the adoption of the next-generation mobile technology would boost their bottom lines. Leading mobile carrier SK Telecom rose 1.47 percent to 138,500 won and smallest operator LG Uplus was up 1.2 percent at 6,720 won.
The local currency closed at 1,122.3 won to the greenback, up 3.6 won from Friday’s close, on eased worries about the global economy and persistent demand for local stocks from overseas investors, dealers said.
