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S.Korea stocks rally at 6-yr high as hopes on strong Q1 attract investors
April 26, 2017 / 3:00 AM / 7 months ago

S.Korea stocks rally at 6-yr high as hopes on strong Q1 attract investors

    * Firm Q1 earnings, economic data pushing KOSPI up -analyst
    * KOSPI may reach 2,350 points by Q3 -analyst
    * Won edges down; Trump tax reform in focus

    SEOUL, April 26 (Reuters) - South Korean shares stepped up
to a near six-year high early on Wednesday as foreign investors'
optimism over the local stock market grew on hopes of strong
first-quarter earnings, while improving economic indicators also
boosted sentiment.
    The Korea Composite Stock Price Index (KOSPI)         was up
0.5 percent at 2,206.84 points as of 0221 GMT, its highest level
since May 3 of 2011.
    "Overall first-quarter earnings and other economic
indicators like South Korean exports are attracting investors
more and more, supporting the index," said Cho Byung-hyun, a
stock analyst at Yuanta Securities.
    The Bank of Korea will release preliminary first-quarter
growth data on Thursday and a Reuters poll showed the country's
economic growth likely accelerated at a sharper pace in the
first three months of the year than the previous quarter as
exports and capital investment tracked a recovery in the global
economy.             
    Cho predicted that the KOSPI could extend gains further,
reaching as high as 2,350 points by the third quarter.
    Foreign investors were set to be net buyers for 5
consecutive sessions, purchasing 96.3 billion Korean won ($85.46
million) worth of KOSPI shares near mid-session. 
    Advancing stocks far outnumbered declining ones by 544 to
231.
    Screenmaker LG Display Co Ltd             gained 1.1 percent
after it posted a record quarterly profit of 1.03 trillion won
in the January-March period, beating market expectations on
demand for large television panels.             
    Market heavyweight SK Hynix             rose more than 2
percent. 
    The South Korean won        edged down as the traders eyed
U.S. President Donald Trump's tax reform policy scheduled for
later in the global day.
    The won            stood at 1,126.4 against the dollar, down
0.1 percent versus Tuesday's close of 1,125.4.
    June futures on three-year treasury bonds         shed 0.04
point to 109.39. 
    
                       0221 GMT    Prev close
 Dollar/won             1,126.4       1,125.4
 Yen/won             10.1231/95       10.1452
 *KTB futures            109.39        109.43
 KOSPI                 2,206.84      2,196.85
 * Front-month futures on three-year treasury bonds
    

 (Reporting by Dahee Kim; Editing by Sam Holmes)
  

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