SEOUL, Nov 2: South Korean shares rose on Friday after data suggested that the world’s top economies, the United States and China, were stabilising, setting off a surge in stocks of ship-building firms.
U.S. Private-sector jobs grew at the fastest pace in eight months in October, a survey found, while consumer confidence for the month jumped to its highest in more than four years, pushing all three Wall Street indices higher by more than 1 percent.
The Korea Composite Stock Price Index (KOSPI) ticked 1.11 percent higher at 1,919.52 points as of 0247 GMT, climbing back over the 1,900-mark after faltering on Thursday.
Samsung Heavy Industries, the world’s second largest shipbuilder, led the charge, rising 7 percent, helped by better-than-expected earnings it reported on Thursday. The shipbuilder sub-index was also up 3.8 percent.
Technology stocks were among the biggest gainers in large cap shares, buoyed by expectations that a booming market for mobile devices will lead to higher sales of components. Samsung Electronics Co rose 2.2 percent and its smaller peers LG Display and SK Hynix rose more than 2 percent respectively.
‘Recent improvements in economic fundamentals are solid, but the problem is how much the market trusts this when facing potential game-changers such as the U.S. Elections,’ said Kang Hyun-ki at IM Investment & Securities.
Chinese factory data earlier indicated a recovery was underway[ID:nL1E8M1E01}, further boosting sentiment.
On the downside, big utilities Korea Gas Corp (KOGAS) and Korea Electric Power Corp (KEPCO) both dipped 0.2 percent, after surging on defensive plays in Thursday’s bear market.
Gainers outnumbered decliners 503 to 284.
The KOSPI 200 benchmark of core stocks was up 1.3 percent, while the junior KOSDAQ edged 0.9 percent higher. (agencies)
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