South Korean stocks closed 0.65 percent higher on Tuesday as investors took their cue from a global upswing, with auto shares leading the gain. The local currency gathered some ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index surged 13.16 points to 2,048.4. Trading volume was moderate at 582.9 million shares worth 5.69 trillion won ($5.02 billion), with winners outpacing losers 500 to 318.
Analysts said investors loaded up on local shares after U.S. and most European markets advanced overnight, despite lingering signs of China’s slowing growth.
Manufacturing data from Europe, a major export destination, showed factories continued to grow at a modest pace in October, while factory activity in China remained weak during the period.
“The Korean stock market moved upward in line with the global stock rally,” said Bae Sung-young, an analyst at Hyundai Securities. “Investors are expected to follow the footsteps of the global market for the time being, although there is a lack of a growth momentum due to the sluggish corporate earnings.”
Auto shares rallied after data showed Monday that Korean carmakers’ sales expanded 8.7 percent in October from a year earlier on robust demand at home and abroad.
Top automaker Hyundai Motor rose 2.52 percent to 162,500 won, and its sister company Kia Motors advanced 4.67 percent to 58,300 won.
Steel and heavy industries also rose on hopes for an economic recovery in Europe.
Leading steelmaker POSCO advanced 4.74 percent to 188,000 won.
SK, the de facto holding firm of South Korean energy and telecom giant SK Group, dropped 5.58 percent to 254,000 won following rumors that it is considering purchasing the cash-strapped shipbuilder Daewoo Shipbuilding & Marine Engineering. Daewoo Shipbuilding’s shares soared 7.66 percent to 7,030 won. Both companies denied the report.
SK Telecom, the nation’s No. 1 mobile carrier, fell 3.56 percent to 230,000 won, this year’s lowest, after the company announced plans to acquire leading cable operator CJ Hellovision in a 500 billion-won stock swap deal.
The local currency ended at 1,133.1 won against the greenback, up 3.9 won from Monday’s close. (Yonhap)
