Seoul stocks end 1.3 pct higher on recovery hopes

(ATTN: ADDS bond yields at bottom)
By Park Bo-ram
SEOUL, Nov. 6 (Yonhap) -- South Korean stocks closed 1.3 percent higher Friday as
stronger U.S. employment data raised global recovery hopes, analysts said. The
local currency surged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 20.22 points to
1,572.46. Volume was light at 247.8 million shares worth 3.6 trillion (US$3.1
billion) won with gainers outnumbering losers 525 to 259.
"The local market gathered ground as stronger U.S. jobless data boosted
confidence in an economic recovery," said Kim Young-jun, an analyst at SK
Securities.
The market advance marks a steep turnaround after the KOSPI dropped sharply in
seven out of the last eight sessions.
The sharp swings in recent sessions came because market volatility has increased
as the daily transaction volume fell to the lowest level since March, Kim said.
Top steelmaker POSCO surged 4.18 percent to 523,000 won after it announced that
work had begun on a new plant in Turkey to produce steel used in automobiles.
Smaller rival Hyundai Steel rose 3.03 percent to 78,300 won.
Brokerage shares also climbed sharply on hopes that the stock market may begin to
bounce back from recent corrections. Leading securities company Daewoo Securities
advanced 4.62 percent to 19,250 won and Woori Securities, an affiliate of
second-largest financial firm Woori Finance Holdings, gained 4.67 percent to
15,700 won.
Ssangyong Motor bolted up by the daily limit of 14.87 percent to 3,205 won as the
troubled automaker awaits a Seoul court's decision on its turnaround plan
summited last month.
The local currency finished at 1,168 won to the U.S. dollar, up 11.8 won from
Thursday's close, as recovery hopes raised risk appetites for emerging market
currencies, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries ended flat at 4.46 percent while the benchmark yield on
five-year government bonds added 0.01 percentage point to 4.98 percent.
pbr@yna.co.kr
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