Seoul: Stocks, won rebound as investors shake off last week's woes

[SEOUL] South Korean shares and the won started the week on a firmer note on Monday, shaking off further disappointing readings on the US economy.

The Korea Composite Stock Price Index (Kospi) was up 0.5 per cent at 2,374.62 points as of 0227 GMT, after slipping 0.8 per cent last week.

"Foreign investors and domestic institutions are coming in to hunt for bargains. Now that the expectations for stronger global economy are high, the Kospi is likely to rise for the week," said Kim Sung-Hwan, a stock analyst at Bookook Securities.

Offshore investors were set to be net buyers, purchasing a net 19 billion Korean won (S$23.24 million) worth of Kospi shares near mid-session.

Electronics shares continued to recover after a sudden slide in US tech stocks last week.

The sub-index for electric & electronics shares jumped nearly 2 per cent. Market heavyweight Samsung Electronics and SK Hynix rose1.7 per cent and 3.6 per cent, respectively.

Decliners outnumbered advancers 412 to 381.

The South Korean won also rebounded, making up for sharp losses on Friday.

The US dollar had climbed on Thursday after the Federal Reserve raised rates as expected and kept the door open for another move later in the year, but it then faltered on Friday after weaker-than-expected housing and consumer sentiment data.

The won stood at 1,129.8 to the US dollar, up 0.4 per cent compared to the previous close of 1,134.1.

June futures on three-year treasury bonds were unchanged at 109.53.

REUTERS