You are here

Seoul: Stocks jump to 1-month high tracking Wall Street, won inches up

38924795 - 01_07_2016 - SOUTH KOREA STOCK MARKET BREXIT.jpg

[SEOUL] South Korean shares jumped to their highest level in a month early on Wednesday as strong US stocks and recent positive economic data from major economies pushed up risk sentiment broadly.

The Korea Composite Stock Price Index (Kospi) was up 0.6 per cent at 2,003.64 points as of 0220 GMT. It reached as high as 2,013.60 points earlier in the session, its best intraday level since June 10 of this year.

"The Kospi is continuing its rally as investors start to think the economy is making its way out of the Brexit shock," said Cho Byung Hyun, a stock analyst at Yuanta Securities.

Mr Cho said that the rally would last until Friday unless Chinese economic indicators scheduled this week are shockingly below expectations.

Offshore investors were set to be net buyers, purchasing 263.9 billion Korean won (S$310.86 million) worth of Kospi shares near mid-session, buttressing the index.

Steel company shares surged after Baosteel Group, China's second-biggest steelmaker, said on Tuesday it plans to cut its crude steelmaking capacity over the next two years.

Posco rose as high as 6.1 per cent, while Hyundai Steel Co gained as much as 9.1 per cent.

Advancers outnumbered decliners 468 to 319.

The South Korean won nudged up with the global risk-on mood, standing at 1,145.3 to the US dollar, up 0.2 per cent compared to Tuesday's close of 1,148.0.

REUTERS