4 days ago
Seoul shares soar over 1% on rate-cut hopes
South Korean stocks rose more than 1 percent Wednesday to end a three-day losing streak as hopes for a US rate cut fueled foreign buying. The local currency gained ground against the US dollar.
The benchmark Korea Composite Stock Price Index added 34.46 points, or 1.08 percent, to close at 3,224.37. The index had dropped for three straight sessions since Friday.
Trade volume was moderate at 316.4 million shares worth 10.2 trillion won ($7.39 billion), with decliners beating gainers 470 to 410.
Foreigners bought a net 634 billion won worth of stocks to lead the bullish mode, while institutions and individuals sold a net 80.8 billion won and 660.1 billion won, respectively.
Investors were buoyed by better-than-expected US July inflation data, which many believe may have given the Federal Reserve a leeway for a rate cut next month.
"The US consumer prices index rose broadly in line with expectations, easing concerns over tariff-led inflation," said Han Ji-young, an analyst from Kiwoom Securities Co.
"Still, some investors are worried about uncertainties over the government's tax revision," Han added, referring to Seoul's potential plan to broaden the definition of large shareholders aimed at boosting capital gains tax revenues.
Market bellwether Samsung Electronics rose 1.13 percent to 71,900 won, and chipmaking giant SK hynix jumped 3.35 percent to 278,000 won.
LG Display surged 22.49 percent to 13,290 won following news reports that US trade authorities have recently imposed a near 15-year import ban on organic light-emitting diode panels produced by China's BOE Technology Group Co. in a complaint filed by Samsung Display.
Top carmaker Hyundai Motor advanced 1.41 percent to 216,000 won, and national flag carrier Korean Air gained 5.45 percent to 25,150 won.
Major shipyard HD Korea Shipbuilding & Offshore Engineering vaulted 6.6 percent to 379,500 won, and defense behemoth Hanwha Aerospace mounted 3.17 percent to 878,000 won.
However, food giant Nongshim fell 1.05 percent to 376,000 won, and leading IT firm Kakao declined 0.31 percent to 63,500 won.
The local currency was quoted at 1,381.7 won against the greenback at 3:30 p.m., up 8.2 won from the previous session. (Yonhap)
