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Roundup: S.Korean shares rise on expected delay of U.S. rate hike

Xinhua, October 5, 2015 Adjust font size:

South Korean shares gained ground on Monday on expectations that interest rate hike in the United States may be delayed after the announcement of weaker-than- expected U.S. employment data.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 8. 57 points, or 0.44 percent, to close at 1,978.25. Trading volume stood at 539.54 million shares worth 4.53 trillion won (3.87 billion U.S. dollars).

Investors interpreted the weak-than-expected U.S. non-farm payrolls for September as a sign that the U.S. central bank would delay its rate hike.

The U.S. dollar weakened after the employment data, sending emerging market currencies, including the South Korean won, appreciated versus the dollar.

The South Korean currency finished at 1,172.4 won against the greenback, up 8.3 won from Friday's close.

The stronger won increased incentives to buy local stocks among foreigners as offshore investors can earn foreign exchange gains from investment into the local currency-denominated stocks.

However, investors refrained from taking aggressive positions as the lackluster U.S. labor market would mean a delayed recovery of the world's largest economy.

Foreigners reduced stock holdings by 10.7 billion won, keeping a selling trend for two sessions in a row. Retail investors sold stocks worth 136 billion won, but local financial institutions bought stocks worth 69 billion won, leading the market advance.

Large-cap shares ended mixed. Market bellwether Samsung Electronics lost 0.4 percent ahead of the release of its third- quarter earnings this week. Top automaker Hyundai Motor declined 1. 8 percent, and its affiliate Kia Motors shrank 2.2 percent.

Leading chemical firm LG Chem advanced 4.2 percent, and the No. 1 oil refiner SK Innovation jumped 5.9 percent. Memory chip giant SK Hynix gained 2.3 percent, and one of leading chemical firms Lotte Chemical climbed 2.4 percent.

Bond prices ended higher. Yields on the liquid three-year treasury notes fell 0.7 basis points to 1.577 percent, and the return on the benchmark 10-year government bonds slipped 4.0 basis points to 2.042 percent. Endi