Seoul shares end up 0.45 pct despite China concerns

(ATTN: ADDS more info on Samsung in 9th para)
SEOUL, Jan. 21 (Yonhap) -- South Korean stocks closed 0.45 percent higher
Thursday as investors digested fears over China's most recent tightening
measures, analysts said. The local currency jumped to a three-month high against
the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 7.63 points to
1,722.01. Volume was moderate at 536.8 million shares worth 5.66 trillion won
(US$4.98 billion), with winners outnumbering losers 391 to 381.
The Seoul bourse started weak in the morning as concerns mounted over China's
efforts to keep its economy under control, which could dent a global recovery.
Those fears were reignited as investors worried strong economic data from China
would trigger efforts by Beijing to cool its markets.
The growth rate of China's annual gross domestic product was 8.7 percent, higher
than the target of 8 percent set by the Chinese government, according its
announcement Thursday.
South Korean stocks, however, reversed earlier losses during the afternoon session.
"The market shrugged off worries over China's monetary policy, instead showing
optimism over the coming earnings reports in the country," said Lee Jae-man, an
analyst at Tong Yang Securities Co.
"Foreign and retail buyers' confidence in the market drove the key index higher
in the late afternoon."
Tech shares and shipbuilders gained ground. Chip giant Hynix Semiconductor rose
1.57 percent to 25,800 won and market leader Samsung Electronics closed up 1.68
percent at a record-high of 848,000 won.
Top shipbuilder Hyundai Heavy Industries gained 2.08 percent to 220,500 won.
The local currency ended at 1,137.10 won against the U.S. dollar, up 1.10 won
from Wednesday's close, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on the
benchmark three-year Treasury note gained 0.02 percentage point to 4.26 percent,
and the return on five-year government bonds rose 0.01 percentage point to 4.81
percent.
ygkim@yna.co.kr
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