Seoul stocks soar on bargain hunting, easing U.S. debt ceiling woes

SEOUL, Oct. 7 (Yonhap) -- South Korean stocks steeply rebounded Thursday as bargain hunters sought oversold stocks in expectations of a rebound, in addition to the optimism about political wrangling over the debt ceiling in the United States. The Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) jumped 51.15 points, or 1.76 percent, to close at 2,959.46 points.

Trading volume was moderate at about 586 million shares worth some 11.7 trillion won (US$9.8 billion), with gainers outnumbering losers 817 to 84.

Foreigners sold a net 107 billion won, while institutions bought 614 billion won. Retail investors offloaded a net 532 billion won.

The key stock index got off to a strong start after three days of losses.

Investor sentiment was boosted by progress in the U.S. debt ceiling impasse that lifted U.S. stock prices overnight. The U.S. Senate is nearing a deal to raise the debt limit by a certain level that could tide the Treasury over until December.

"The easing concerns about the U.S. debt ceiling seem to have helped the KOSPI's rebound," Mirae Asset Securities analyst Park Gwang-nam said.

Most large closed higher in Seoul, with tech and auto heavyweights leading the market advance.

Market kingpin Samsung Electronics added 0.42 percent to 71,600 won, but No. 2 chipmaker SK hynix retreated 0.83 percent to 95,700 won.

Internet portal operator Naver surged 5.5 percent to 393,500 won, and pharmaceutical giant Samsung Biologics jumped 3.03 percent to 815,000 won.

Top automaker Hyundai Motor increased 3.61 percent to 201,000 won, with its smaller affiliate Kia soaring 6.83 percent to 79,800 won. Leading chemical firm LG Chem shed 0.81 percent to 737,000 won, and top bank cap Kakao Bank advanced 3.45 percent to 60,000 won.

The local currency closed at 1,190.4 won to the U.S. dollar, up 1.9 won from the previous session's close.

jwc@yna.co.kr
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