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Seoul: Stocks jump as markets rebound from Trump shock

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[SEOUL] South Korean shares jumped early on Thursday as investors bargain-hunted after the market fell more than 2 per cent to a four-month low, while European stock markets and Wall Street responded with relative calm to Donald Trump's presidential election victory.

The Korea Composite Stock Price Index (Kospi) was up 1.9 per cent at 1,996.31 points as of 0251 GMT.

"Though Trump's victory was something unexpected, the global market as a whole has been in the mood for a rebound, which will continue for the time being," said Bae Sung Young, a stock analyst at Hyundai Securities.

Ms Bae added that South Korean stocks will follow the trend, but may not gain as much as global markets depending on the policies Mr Trump announces.

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Offshore investors were set to be net buyers, purchasing 165.8 billion Korean won (S$201.97 million) worth of Kospi shares near mid-session.

Carmakers' shares fell after Mr Trump's victory. Hyundai Motor was down 1.9 per cent, while Kia Motors fell 3.6 per cent and auto parts supplier Mando Corp dropped 6.9 per cent.

South Korean chat app operator Kakao Corp rose more than 10 per cent as its third-quarter operating profit was better than expected.

Advancing issues outnumbered decliners 715 to 137.

The South Korean won held steady and stood at 1,149.5 to the US dollar, unchanged versus Wednesday's close.

South Korea's foreign exchange authorities were suspected to have sold US$1 billion or more on Wednesday to curb the won's fall, Seoul currency traders said. The currency's intraday low reached 1,157.30 to the US dollar before it closed at 1,149.50.

December futures on three-year treasury bonds lost 0.26 point to 110.24.

REUTERS

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