South Korean stocks closed 0.87 percent higher Tuesday as weak economic data from major economies spurred expectations that policymakers may move toward stimulus measures, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index jumped 16.17 points to 1,867.82. Trading volume was moderate at 340.8 million shares worth 4.67 trillion won ($4.1 billion), with gainers outnumbering decliners 523 to 280.
“A series of weak economic data from China and the U.S. raised hopes that central banks around the world will act to spur growth,” said Lim Dong-lak, an analyst at Hanyang Securities Co., suggesting investors keep tabs on the European Central Bank meeting on Thursday.
Lim also attributed the gain to eased concerns over the eurozone debt crisis.
“The results of the European Union summit were better than expected and definitely marked a step forward to a resolution.
The local currency closed at 1,138.3 won against the greenback, up 7.8 won from Monday’s close, thanks to the KOSPI’s rise and eased eurozone concerns, dealers said.
European stock markets fared well after the event and this cheered up investors.”
Blue-chip heavyweights shored up the KOSPI. Hyundai Heavy Industries, the world’s No. 1 shipbuilder, jumped 4.87 percent to 269,000 won following a $1.2 billion contract to build 10 container ships.
Leading chemicals maker LG Chem rose 4.98 percent to 305,500 won and top steelmaker POSCO gained 1.91 percent to 373,000 won.
Automakers, however, ended bearish as global recession concerns outweighed strong earnings forecasts. Top player Hyundai Motor slipped 1.7 percent to 231,500 won and smaller Kia Motors lost 2.39 percent to 73,500 won.
The local currency closed at 1,138.3 won against the greenback, up 7.8 won from Monday’s close, thanks to the KOSPI’s rise and eased eurozone concerns, dealers said.
