Seoul: Stocks jump the most in over 2 months on strong data

[SEOUL] South Korean shares jumped the most in more than 2 months, with the market tracking a rally in global equities on Thursday (Feb 3), as investors welcomed data that signalled the country's factory activity grew at the sharpest pace in 6 months. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi was up 44.52 points, or 1.67 per cent, at 2,707.86, the sharpest gain since last December.

Among the heavyweights, technology giant Samsung Electronics traded flat and peer SK Hynix rose 2.9 per cent, while LG Chem climbed 5.95 per cent and Naver advanced 3.39 per cent.

Easing of market volatility over the national holiday period led to Monday's rise as local shares tracked gains on the Wall Street in the past few days, said Lee Kyoung-min, an analyst at Daishin Securities.

South Korea's factory activity grew at the sharpest pace since last July as output and new order picked up, but persistent supply chain woes weighed on the outlook, a private-sector survey showed on Thursday.

Foreigners were net buyers of 10.3 billion won (S$11.5 million) worth of shares on the main board.

The won was quoted at 1,206.4 per dollar on the onshore settlement platform, 0.07 per cent lower than its previous close at 1,205.5.

In offshore trading, the won was quoted at 1,206.3 per dollar, down 0.6 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,206.9.

The Kospi dropped 9.06 per cent so far this year, but lost 11.4 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 428.93 million shares. Of the total traded issues of 930, the number of advancing shares was 809.

The won weakened 1.5 per cent against the dollar so far this year.

In money and debt markets, March futures on 3-year treasury bonds rose 0.15 point to 108.10.

The most liquid 3-year Korean treasury bond yield fell by 3.3 basis points to 2.155 per cent, while the benchmark 10-year yield dropped 2.3 basis points to 2.563 per cent. REUTERS