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Optimism on trading floors persists, Kospi adds to gains

Mar 06,2020
Stocks ended higher on Thursday, extending their gains to a fourth straight session amid expectations of further monetary easing by other major central banks following a U.S. rate reduction. The won rose against the dollar.

The Kospi rose 25.93 points, or 1.26 percent, to 2,085.26.

Individuals bought a net 321 billion won ($270 million) worth of stocks, offsetting foreign and institutional selling valued at 347 billion won.

“The broad index ended higher due to overnight gains on Wall Street,” said Noh Dong-kil, an analyst at NH Investment & Securities.

The Dow Jones industrial average rose 4.53 percent, and the tech-heavy Nasdaq composite index climbed 3.85 percent.

U.S. stocks soared after former Vice President Joe Biden, widely seen as a business-friendly candidate, strengthened his chances of winning the Democratic presidential nomination.

Huh Jae-hwan, a strategist at Eugene Investment, said a rate cut in Canada and expectations of policy coordination in major countries helped boost investor sentiment.

Earlier this week, the U.S. Federal Reserve slashed interest rates by half a percentage point in an apparent move to mitigate the economic fallout from the coronavirus outbreak.

In Seoul, most large-cap stocks advanced.

Samsung Electronics rose 0.70 percent to 57,800 won, and home appliances maker LG Electronics moved up 1.49 percent to 61,500 won.

Top carmaker Hyundai Motor climbed 0.88 percent to 114,000 won, and its auto parts arm Hyundai Mobis gained 0.72 percent to close at 210,500 won.

The local currency closed at 1,181.20 won against the dollar, down 6.60 won from the previous session’s close.

The secondary Kosdaq was up 8.46 points, or 1.32 percent, to close at 650.19.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds gained 2.3 basis points to 1.051 percent, and the return on the benchmark 10-year government bond added 6.4 basis points to reach 1.06 percent.

BY KIM YEON-AH, YONHAP [kim.yeonah@joongang.co.kr]