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S.Korean shares rise on Wall St data rally; won firmer
October 20, 2014 / 2:26 AM / 3 years ago

S.Korean shares rise on Wall St data rally; won firmer

* KOSPI rebounds sharply after 3-day skid on healthy U.S
data
    * Foreign investors turn buyers after 12-day selling streak
    * Won finds support in offshore demand for local equities

    By Joonhee Yu
    SEOUL, Oct 20 (Reuters) - South Korean shares rose more than
1 percent on Monday, bouncing back after a 3-day losing streak
on positive economic data from the U.S which sparked a rally in
equity markets across the globe.
    The Korea Composite Stock Price Index (KOSPI) was up
1.39 percent at 1,927.15 points as of 0135 GMT.  
    U.S data out on Friday showed consumer sentiment in early
October at its highest level since July 2007, while new housing
starts rose 6.3 percent to an annual 1.02 million units last
month, much faster than expected. 
    "Today's relief rally may have signalled an end to the
latest bear market cycle, and impending new measures from the
government to support local equities will provide steady support
moving forward," said Kwak Hyun-soo, an analyst at Shinhan
Investment Corp.
    "Third quarter corporate earnings still represent a
potential obstacle to the cheery mood, but much of it has been
priced into the market already," said Kwak Hyun-soo, an analyst
at Shinhan Investment Corp.
    Shares on the main bourse rallied across the board, with 15
out of the 17 sector sub-indices on the KOSPI in positive
territory. Winning shares outnumbered decliners more than 2 to
1.
    Offshore players bought a net 21.8 billion won ($20.54
million) worth of equities on the main bourse, on track to break
a 12-day selling streak in which they have dumped a net 2.4
trillion won ($2.26 billion) of shares.
    Battered blue-chip exporters, which had been the target of
heavy sell-offs by foreign investors in recent weeks, rebounded
on Monday as Samsung Electronics rose 1.2 percent
while Hyundai Motor climbed 2.8 percent.
    The benchmark KOSPI 200 index of large-cap shares
climbed 1.58 percent, underpinning the broad rally.
    Shares in LG Display rallied 3.6 percent on
Monday, as several brokerages tipped the screenmaker to beat
market forecasts and post better-than-expected third-quarter
earnings.
    LG Display, the world's largest maker of LCDs and a key
supplier of Apple, is set to announce its earnings for
the July-September period on Wednesday. 
    The South Korean won firmed on Monday, as foreign
buying in the equity market boosted demand for the local
currency.
    The local currency was quoted at 1,061.2 to the
dollar as of 0135 GMT, compared to Friday's closing rate of
1,065.9.
    December futures on three-year treasury bonds shed 4
basis points to trade at 107.72. 
 
                       0135 GMT    Prev close
 Dollar/won             1,061.2       1,065.9
 Yen/won             9.9014/053        9.9250
 *KTB futures            107.72        107.76
 KOSPI                 1,927.15      1,900.66
 * Front-month futures on three-year treasury bonds

 (Editing by Eric Meijer)

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