South Korean stocks jumped over 1 percent Monday to snap their four-day losing streak on bargain hunting amid dashed hopes for an early rate cut by the Federal Reserve. The local currency rose against the US dollar. The benchmark Korea Composite Stock Price Index moved up 35.59 points, or 1.32 percent, to close at 2,722.99. Trade volume was moderate at 546 million shares worth 15.6 trillion won ($11.4 billion), with .
Korea s stock market is extending a volatile run in the face of a surge in short-selling of red-hot battery shares here. Data from the Korea Exchange showed investors short-selling transaction volume on the benchmark KOSPI and secondary Kosdaq reached a monthly high in July.
Foreign investors are betting more on the Korean stock market amid growing hopes for recovery in economic fundamentals here, data showed Monday. Market analysts said the worst appears to be over in the local capital market on signs of a solid foreign capital inflow. Starting this month, the won-dollar exchange rate is also on the steep decline, as the U.S. Federal Reserve is widely forecast to take a dovish turn during the upcoming Federal Open Market Committee meeting this week.
Korea s financial markets have grown increasingly less sensitive to prolonged inflation woes in the United States, as major large-cap companies in semiconductors and automobiles are forecast to gradually enhance their earnings fundamentals through recovering exports, analysts said.The analysis contrasts with the volatile market sentiment prevalent last year when local stocks and currency extended wide losses in reaction to the U.S. Fed s steep rate hikes and then-soaring prices.