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S.Korea stocks jump on robust economic growth, Wall Street
June 2, 2017 / 2:40 AM / 4 months ago

S.Korea stocks jump on robust economic growth, Wall Street

    * S.Korea's Jan-March GDP up 1.1 percent, beating estimate
    * KOSPI rebounds to near record-high level of 2,371.67
    * Strong sentiment to continue, setting a start for another
rally -analyst

    SEOUL, June 2 (Reuters) - Seoul shares jumped early on
Friday as South Korea posted its highest quarterly growth in six
quarters, boosting investor sentiment with strong support from
U.S. stocks overnight.
    South Korea's economy grew a seasonally adjusted 1.1 percent
in January to March, nicely topping an earlier estimate of 0.9
percent.             
    The Korea Composite Stock Price Index (KOSPI)         was up
0.9 percent at 2,366.47 points as of 0156 GMT, close to Monday's
record-high intraday level of 2,371.67.
    The Dow Jones Industrial Average        rose 135.53 points,
or 0.65 percent, to end at 21,144.18, the S&P 500        gained
18.26 points, or 0.76 percent, to 2,430.06 and the Nasdaq
composite         added 48.31 points, or 0.78 percent, to
6,246.83.
    Rhoo Yong-seok, a stock analyst at KB Securities, said both
local and global economic indicators were pointing at further 
KOSPI gains, with strong market sentiment likely to last for a
while.
    "After yesterday's strong imports data, investors have
started to believe that even domestic demand in South Korea is
improving. And now that the GDP is this strong another KOSPI 
rally seems quite obvious," he said. 
    While South Korea's May exports showed a double-digit growth
of 13.4 percent, imports soared a faster 18.2 percent to $39.05
billion, topping expectations for a 14.6 percent gain. This
resulted in a trade surplus of $5.99 billion.             
    Foreign investors were poised to be net buyers, purchasing
234.8 billion Korean won ($209.72 million) worth of KOSPI shares
near mid-session, supporting the index. 
    Tech giant Samsung Electronics             gained 2.5
percent while LG Electronics             rose nearly 5 percent
on market forecasts that IT shares will continue to be robust.
    The South Korean won            edged up 0.2 percent to 
1,119.7 against the dollar versus Thursday's close of 1,122.0.
    June futures on three-year treasury bonds         shed 0.02
point to 109.59. 
    
                       0156 GMT    Prev close
 Dollar/won             1,119.7       1,122.0
 Yen/won             10.0320/55       10.0666
 *KTB futures            109.59        109.61
 KOSPI                 2,366.47      2,344.61
 * Front-month futures on three-year treasury bonds

 (Reporting by Dahee Kim; Editing by Eric Meijer)
  

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