Seoul shares rise on upbeat U.S. earnings

All News 15:55 October 17, 2018

SEOUL, Oct. 17 (Yonhap) -- South Korean stocks advanced Wednesday as strong earnings data and economic indicators from the United States boosted investor sentiment. The local currency strengthened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index rose 22.39 points, or 1.04 percent, to close at 2,167.51. Trading volume was light at 266.4 million shares worth 4.64 trillion won (US$4.12 billion), with gainers overwhelming decliners 644 to 191.

U.S. stocks bounced back on Tuesday to post their biggest gains since March on the back of strong earnings expectations. Job openings rose to a fresh all-time high in August.

"Local stocks rebounded in tandem with the upbeat mood on Wall Street, as steep losses in recent trading days had caused a drop in their value," Ryu Yong-seok, an analyst at KB Investment & Securities, said. "Concerns over geopolitical risks surrounding the Saudi journalist also seemed to have passed the peak."

Institutions and foreigners bought a net 3.15 billion won and 3.99 billion won worth of local stocks, respectively, while individuals sold a net 2.76 billion won.

Market kingpin Samsung Electronics moved up 1.26 percent to 44,150 won, and leading automaker Hyundai Motor surged 1.72 percent to 118,500 won.

Refiners rallied as oil prices gained in the wake of a fall in U.S. crude inventories, amid additional risks over tightening supply due to U.S. sanctions on Iran and tension with Saudi Arabia.

SK Innovation, the nation's leading refiner, moved up a solid 2.58 percent to 219,000 won, and No. 3 S-Oil jumped 5.53 percent to 133,500 won to recoup some of its earlier losses.

Samsung Biologics, the healthcare unit of Samsung Group, sank 3.74 percent to 450,000 won on news that the Financial Services Commission is likely to confirm its earlier judgment that the firm broke accounting rules in 2015, which led to serious penalties.

The South Korean currency closed at 1,126.5 won against the U.S. dollar, up 1.5 won from Tuesday's close.