SEOUL: South Korean stocks closed 0.57 percent higher Monday, as another rate cut in China and a strong U.S. job market whetted investor appetite, analysts said. The local currency lost ground against the U.S. dollar.
The Korea Composite Stock Price Index rose 11.86 points to finish at 2,097.38, snapping a three-day losing streak. Trading volume was moderate at 326.9 million shares worth 4.97 trillion won ($4.57 billion) with gainers far outstripping decliners 564 to 232.
Analysts said the additional rate cut by China on Sunday gave a boost to investor sentiment, raising expectations that Beijing will continue its easing policy to prop up the economy.
“China’s central bank cut the key rate for the third time in the last six months, showing that it is willing to boost the economy. This bodes well for Korean consumer goods makers, such as cosmetics firms and food manufacturers,” said Park Ok-hee, an analyst at IBK Securities Co.
The U.S. posted solid job growth in April, while the unemployment rate fell to a near seven-year low, signaling that the world’s largest economy is gaining momentum for a recovery.
Top cosmetics maker Amore Pacific, which sells a big portion of its products to China, advanced 3.05 percent to 388,000 won.
Leading food manufacturer CJ Cheiljedang jumped 2.71 percent to 455,500 won.
