SEOUL: South Korean stocks scaled a fresh five-month intraday high on Monday as risk appetites were underpinned by China’s decision to cut its policy interest rate over the weekend.
The People’s Bank of China (PBOC) cut its benchmark lending and deposit rates on Saturday evening in a bid to tackle flagging growth in the world’s second largest economy and South Korea’s biggest trading partner.
The Korea Composite Stock Price Index (KOSPI) was up 0.33 per cent at 1,992.44 as of 0145 GMT, its highest level since Oct 1.
“The effects of the ECB’s quantitative easing measures are starting to kick in, thereby also lifting the Chinese economy as well which is the largest exporter to the euro zone,” said Kang Hyun-ki, an analyst at IM Investment & Securities.
