business

S.Korean stocks rise on positive Chinese economic data

SEOUL, Nov. 2 (Xinhua) — South Korean stocks rose on Monday as foreign and institutional investors bought shares on the positive economic data from China.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 33.01 points, or 1.46 percent, to settle at 2,300.16. Trading volume stood at 664.6 million shares worth 8.4 trillion won (7.4 billion U.S. dollars).

The KOSPI took off a strong start and extended earlier gains throughout the session as upbeat Chinese economic data boosted expectations for the robust growth of the world’s No.2 economy.

China’s manufacturing purchasing managers’ index (PMI), a gauge of factory activity, edged down to 51.4 in October from 51.5 in September, but the figure stayed above 50 and indicated expansion, according to the National Bureau of Statistics.

The PMI for China’s non-manufacturing sector advanced from 55.9 in September to 56.2 in October, seeing a growth for three straight months.

Views emerged that the KOSPI was undervalued after dropping 2.56 percent in the previous session.

The KOSPI’s further gain was restricted amid the lingering uncertainty over the U.S. presidential election this week and the COVID-19 resurgence in Europe.

Foreign and institutional investors were net buyers, but retail investors dumped stocks.

Among large-cap shares, gainers outnumbered losers. Market bellwether Samsung Electronics went up 1.4 percent, and leading chemical firm LG Chem advanced 2.0 percent. Biopharmaceutical giant Celltrion rose 1.5 percent, and Samsung BioLogics, a biopharmaceutical unit of Samsung Group, gained 2.4 percent.

Leading oil refiner SK Innovation declined 2.4 percent, and the most-used search engine Naver slipped 1.6 percent.

The local currency finished at 1,133.6 won versus the greenback, up 1.5 won from the previous close.

Bond prices ended lower. Yields on the liquid three-year treasury notes rose 3.6 basis points to 0.971 percent, and the return on the 10-year government bonds gained 5.6 basis points to 1.602 percent.

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