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Shares rise as Trump hints of China trade deal

Jan 10,2019
Korean shares closed higher Wednesday on signs of progress in U.S.-China trade talks. The Korean won appreciated against the dollar.

The benchmark Kospi rose 39.44 points, or 1.95 percent, to close the session at 2,064.71. Trading volume was moderate at 379.52 million shares worth 5.42 trillion won ($4.8 billion).

Many investors were buoyed by trade negotiation developments amid the Trump administration’s optimism over a “reasonable” trade deal with China, analysts said.

Institutional investors bought a net 141.9 billion won, and foreign investors bought 384.6 billion won worth of shares. Individuals sold a net 515.7 billion won worth of stock.

Most large-cap stocks ended in positive territory.

Major tech shares were winners as Samsung Electronics jumped 3.94 percent to 39,600 won, and chipmaker SK Hynix soared 7.43 percent to 63,600 won.

Samsung Electronics rebounded from a 1.68 percent fall in the previous session after it came out with disappointing preliminary results for the October-December quarter.

Biopharmaceutical shares were also winners as Celltrion inched up 0.23 percent at 214,000 won and Samsung BioLogics edged up 0.26 percent at 387,000 won.

Auto-related shares rose as Hyundai Motor gained 2.93 percent to 123,000 won, and sister company Kia Motors added 2.96 percent to 34,800 won. Auto-parts maker Hyundai Mobis ended 4.92 percent higher at 202,500 won.

Leading steelmaker Posco was up 4.07 percent at 255,500 won.

Shipbuilders also ended the session up as Hyundai Heavy Industries rose 1.12 percent to 135,500 won.

Leading refiner SK Innovation climbed 1.69 percent to 180,000 won, and S-Oil rose 1.39 percent to 94,800 won.

Meanwhile, leading wireless services provider SK Telecom fell 2.36 percent to 269,500 won, and state-run electric utility Kepco shed 5.36 percent to 33,550 won.

The secondary Kosdaq rose 11.25 points, or 1.68 percent, to end the session at 679.74. The tech and bio-heavy index was lifted by a 1.1 percent rise in the U.S. Nasdaq Composite Index overnight. Foreigners turned net buyers after two consecutive sessions of selling on the junior bourse.

The Korean won closed at 1,122.10 won against the dollar, down 2.00 won from the previous session.

Bond prices, which move inversely to yields, ended higher. The yield on three-year bonds fell 0.1 points to 1.81 percent. The yield on 10-year bonds declined 0.9 basis points to 1.99.

BY KIM HEYU, YONHAP [kim.heyu@joongang.co.kr]