SEOUL, Feb 27: Seoul shares edged higher on Wednesday morning after Federal Reserve Chairman Bernanke reassured investors that monetary stimulus measures in the United States would continue.
The Korea Composite Stock Price Index (KOSPI) ticked up 0.2 percent at 2004 points at 0228 GMT.
Other Asian shares were also rebounding on Wednesday morning, with the MSCI’s Asia index up 0.5 percent.
‘Bernanke’s affirmation for continued quantitative easing helped calm markets which had been jittery over Italy’s inconclusive election results,’ said Park Sung-hoon at Woori Investment & Securities.
However, Park said the gains were capped by the automatic spending cuts that are set to begin in the United States.
While affirming the Fed’s commitment to continued monetary easing, Bernanke also warned that the spending cuts that are set to take hold later this week would threaten an already challenged economic expansion.
The electronics, auto and utilities sectors led the gains, with 400 shares advancing while 357 declined.
Carmakers Hyundai Motor Co and sibling Kia Motors were up 1.2 percent and 2.2 percent respectively, bouncing back from losses in the past two sessions.
Hyundai is looking to settle lawsuits from U.S. consumers who said they were duped by the automaker’s misleading fuel economy claims, according to a filing made in federal court on Tuesday.
Kia Motors, is evaluating whether to join the settlement.
‘Unless the settlement is an unusually large amount, their share prices will fare better if it is resolved quickly rather than play out in a protracted court battle,’ said Kim Yoon-ki, an auto analyst at Mirae Asset Securities.
State-owned utility Korea Electric Power Corp (KEPCO) rose 2.9 percent, leading the sector’s 2.2 percent rise overall.
The KOSPI 200 benchmark of core stocks was up 0.2 percent, while the junior KOSDAQ edged 0.6 percent higher. (AGENCIES)
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