The Korea Herald


Seoul stocks open sharply higher on economic rebound hopes

By Yonhap

Published : Aug. 31, 2020 - 09:47

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(Yonhap) (Yonhap)

South Korean shares opened sharply higher Monday on hopes of an economic rebound, despite the government's implementation of toughened social distancing measures.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 22.97 points, or 0.98 percent, to 2,376.77 in the first 15 minutes of trading.

Investor sentiment ran high in the wake of the US Fed Reserve's shift of stance signaling that it will stay accommodative for longer even if US inflation exceeds its target level of 2 percent.

Spreading new coronavirus cases remained a risk.

Starting Sunday, South Korea raised the social distancing level by half a notch to 2.5. Under the eight-day emergency measure, only takeaway and deliveries are permitted after 9 p.m. at restaurants and bakeries in the greater Seoul area.

In Seoul, most large caps traded higher.

Market bellwether Samsung Electronics added 0.72 percent, while No. 2 chipmaker SK hynix dipped 0.77 percent.

Top pharmaceutical firm Samsung Biologics shed 0.38 percent, but leading chemical maker LG Chem climbed 0.92 percent.

The country's largest automaker, Hyundai Motor, jumped 2.91 percent, and internet portal giant Naver gained 1.6 percent.

The local currency was trading at 1,180.15 won against the US dollar, up 4.15 won from the previous session's close. (Yonhap)