Seoul: Shares post record closing high on chip boost, US stimulus hopes

[SEOUL] South Korean shares closed at a record high on Monday, driven up by chip giants, as investors hoped that a massive stimulus package would be passed soon in the United States.

The Kospi soared 68.36 points, or 2.18 per cent, to 3,208.99, rebounding from a 0.6 per cent decline on Friday and marking its fourth gain in five sessions.

Chip giants Samsung Electronics and SK Hynix surged 3 per cent and 5.1 per cent, respectively. Other heavyweights such as LG Chem and Naver added about 1.5 per cent.

"Global equities strengthened on hopes for a passage of Biden administration's stimulus package ... Investors are eyeing earnings reports from technology heavyweights at home and in the US," said Kiwoom Securities' analyst Seo Sang-young.

President Joe Biden's administration tried to head off Republican concerns that his US$1.9 trillion pandemic relief proposal was too expensive on a Sunday call with Republican and Democratic lawmakers, some of whom pushed for a smaller plan targeting vaccine distribution.

Back home, the central bank is due to release the fourth quarter GDP data on Tuesday, which is seen growing 0.7 per cent quarter-on-quarter, according to 14 economists polled by Reuters.

Foreigners were net buyers of US$215.23 million worth of shares on the main board.

REUTERS

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