Seoul stocks end up 2.25 pct on recovery hopes

(ATTN: ADDS bond yields at bottom)
SEOUL, April 1 (Yonhap) -- South Korean stocks closed 2.25 percent higher
Wednesday as investors scooped up carmakers and banks on hopes of an economic
recovery, analysts said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.1 points to
1,233.36. Volume was heavy at 578.9 million shares worth 6.3 trillion won (US$4.6
billion), with gainers outnumbering losers 640 to 195.
"Market sentiment got a boost from improving economic indicators, including
February industrial production," said Lee Jae-man, an analyst at Tong Yang
Securities. "The key index was lifted by gains in tech, financial and other
economy-sensitive shares."
Financial shares gathered substantial ground on relieved concern over banks'
risky loans. KB Financial Group, which controls top lender Kookmin Bank, advanced
4.55 percent to 34,450 won and Mirae Asset Securities, a leading brokerage,
closed up 9.7 percent to 78,000 won.
Automakers extended strong gains to a second day. Hyundai Motor, the biggest
local carmaker, jumped 4.68 percent to 58,100 won and its affiliate Kia Motors
surged 4.92 percent to end at 8,950 won.
Top carrier Korean Air Lines also surged 5.07 percent to 36,300 won as a
strengthening local currency eased concerns over high fuel costs.
State power monopoly Korea Electronic Power Corp. soared 2.95 percent to 26,200
won, snapping a five-day losing streak.
The local currency finished at 1,379.5 won against the U.S. dollar, up 4 won from
Tuesday's close, after the government reported its March trade surplus hit a
record at $4.6 billion.
Bond prices, which move inversely to yields, closed higher. The return on
three-year Treasuries dropped 0.11 percentage point to 3.83 percent, and the
benchmark yield on five-year government bonds also fell 0.08 percentage point to
4.61 percent.
pbr@yna.co.kr
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