Seoul: Shares mark steepest daily gain since 2008

[SEOUL] South Korean shares ended up 8.6 per cent and posted the steepest daily gain since October 2008 as the US Fed's plans on bottomless dollar funding and the South Korean government's 100 trillion won (S$116.3 billion) rescue package eased liquidity concerns in emerging markets. 

The Seoul stock market's main KOSPI closed up 127.51 points, or 8.60 per cent, at 1,609.97.

Foreigners were net buyers of 12.2 billion won worth of shares on the main board.

Emerging markets including Korea, severely affected by a growing concern over dollar crunch, are responding more sharply to the US Federal Reserve's detailed plans to provide endless dollar liquidity, said Lim Dongmin, an analyst at Kyobo Investment & Securities.

The upcoming stimulus package bill, once passed, will further strengthen the investor confidence, he added.

The US Federal Reserve on Monday rolled out an extraordinary array of programmes to backstop an economy reeling from sweeping restrictions on commerce.

REUTERS