SEOUL: South Korea’s benchmark share index edged above the 2,100 level for the first time in nearly 4 years on Tuesday, helped by the continued flow of offshore funds and expectations China will take more stimulus steps to spur its sputtering economy.
The Korea Composite Stock Price Index (KOSPI) was up 0.1 percent at 2,101.21 points as of 0310 GMT on Tuesday, compared with the previous close at 2,098.92 points.
“Global funds have flowed into emerging markets,” including South Korea, said Lee Jae-hoon, an analyst at Mirae Asset Securities.
Foreign investor interest in South Korean equities remained strong, with net purchases worth 224 billion won ($204.10 million) by midday, extending their buying spree for a sixth consecutive session.
After Monday’s dismal trade data, market expectations hardened for more stimulus from Beijing as Asia’s economic powerhouse struggled for momentum. China is South Korea’s biggest export market.
Doosan Heavy Industries Construction Co Ltd jumped 4.4 percent to 31,700 won, its highest intraday level since July 31, 2014, after announcing on Monday that it won a 976 million won ($889,294) order in Vietnam.
Samsung SDI Co LTD was up more than 4 percent, and Hundai Motor Co rose 2 percent. The South Korean won was poised to snap a five-day losing streak, helped by the Singapore dollar jumping against the U.S.dollar after the country’s central bank unexpectedly held monetary policy steady. The won edged up 0.1 percent to 1,097.6 per dollar from the previous close at 1,098.6.
The focus moves to U.S. retail sales data for March due later on Tuesday for evidence that spending is picking up after a sluggish start to the year. June futures on three-year treasury bonds were down 0.05 point at 109.39 as of 0310 GMT.
