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Seoul stocks jump over 1 pct on eased U.S. rate hike woes

All News 15:51 September 05, 2016

SEOUL, Sept. 5 (Yonhap) -- South Korean stocks rose sharply on Monday, led by gains in automakers and techs, on speculation that weaker-than-expected jobs data in the United States may delay a much-awaited rate hike in there. The Korean won surged against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 21.77 points, or 1.07 percent, to close at 2,060.08. Trade volume was moderate at 567 million shares worth 4.08 trillion won (US$3.69 billion), with gainers outnumbering losers 530 to 296.

Data by the U.S. Labor Department showed that U.S. payrolls climbed by 151,000 last month following a 275,000 gain in July, lower than the expected addition of some 180,000, lowering expectations that the U.S. Fed may raise its interest rates this month.

"The August jobs data reduced the need (for the Fed) to raise the borrowing costs soon," said Hong Choon-wook, an analyst at Kiwoom Securities.

Top market cap Samsung Electronics rose 0.56 percent to end at 1,606,000 won, after it announced an unprecedented global recall of its Galaxy Note 7 after several of the phablets caught fire while being charged, promising to offer new replacements to all buyers at home and abroad.

Naver, the top Internet portal operator, advanced 2.29 percent to 850,000 won, and SK hynix, a major chipmaker, gained 2.32 percent to 37,500 won.

Hyundai Motor, the country's top automaker, rose 2.96 percent to 139,000 won, and its smaller affiliate Kia Motors climbed 1.32 percent to 42,300 won.

AmorePacific, the No. 1 cosmetics maker, suffered a 2.46 percent dip to 396,000 won.

Hanjin Shipping, the No. 1 container shipper, closed at 1,070 won, down 13.71 percent, after it was put under court receivership last week.

Korean Air Lines, the parent firm of Hanjin Shipping, sank 2 percent to 34,300 won on worries that it may inject additional cash into the financially troubled shipper.

The local currency closed at 1,105.1 won against the U.S. dollar, up 12.1 won from the previous session's close.

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