Published : 2013-09-03 15:50
Updated : 2013-09-03 15:50
South Korean stocks closed 0.46 percent higher Tuesday as investors' sentiment was boosted by improved economic data from the eurozone and China, analysts said.
The local currency closed higher against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 8.93 points to finish at 1,933.74. Trading volume was low at 294.2 million shares worth 3.98 trillion won ($3.62 billion) with gainers outpacing losers 542 to 265.
Analysts said the gain of Seoul shares came as the Purchasing Managers Index (PMI) for the eurozone's manufacturing sector in August reached the highest level since July 2011 at 51.4, while that of China also came to 50.1, the highest level in four months.
The PMI is an index that measures the health of a country's manufacturing sector. A reading of 50 or above represents an expansion of the sector from the previous month, while a reading of below 50 represents a contraction.
"The improved data from the eurozone and China drove the market gain as they are signs of an economic recovery," said Lee Sang-jae, a researcher at Hyundai Securities Co.
Analysts, meanwhile, said the growth was limited as investors took a wait-and-see approach on the United States Federal Open Market Committee's two-day regular monetary meeting, which is slated for Sept. 17-18.
The meeting is anticipated to provide investors with more details in the schedule of the Fed's tapering of its quantitative easing moves.
A monetary easing move by an advanced country usually causes investors to set their sights on riskier emerging markets, while a reduction in the move sparks them to relocate their investments.
Overseas investors extended their buying rally to the eighth consecutive session with a 236,040 billion-won net purchase, and institutions also scooped up a net 57.9 billion won. In contrast, individuals sold a net 284.7 billion won.
Builders closed higher, with Hyundai Engineering & Construction rising 1.91 percent and Daelim Industrial adding 4.25 percent.
Daewoo Engineering & Construction advanced 3.88 percent.
Financial firms also closed bullish, with Shinhan Financial adding 2.31 percent to 42,000 won and KB Financial climbing 1.97 percent to 36,200 won. Woori Financial gained 1.35 percent to 11,300 won.
In contrast, tech shares closed lower, with Samsung Electronics falling 1.04 percent to 1,337,000 won and flat panel maker LG Display losing 0.51 percent to 29,150 won.
Carmakers also lost ground, with No. 1 player Hyundai Motor falling 0.82 percent to 242,500 won and its smaller affiliate Kia Motor losing 0.45 percent to 65,900 won. Auto parts maker Hyundai Mobis shed 1.6 percent to 277,000 won.
The local currency ended at 1,097.90 won against the U.S. dollar, up 2.60 won from Monday's close, due mainly as local shipbuilders offloaded the greenback, dealers said. (Yonhap News)