SEOUL, Aug 1: South Korean shares edged up on Thursday as a better-than-expected Chinese survey on manufacturing activity and unexpectedly strong U.S. Quarterly GDP eased worries about the global economy.
Investors were also relieved there would be no early reduction by the Federal Reserve of its bond-purchase stimulus programme after the U.S. Central bank promised to maintain its current policy.
The Korea Composite Stock Price Index (KOSPI) was up 0.4 percent at 1,921.99 points at 0200 GMT.
‘The Federal Open Market Committee’s policy statement to sustain the stimulus has relieved investors although concerns for possible U.S. Deflation remains,’ said Han Beom-ho, a market analyst at Shinhan Securities.
China said on Thursday its official purchasing managers’ index (PMI) for the manufacturing sector rose to 50.3 in July from 50.1 in June. The figure was higher than the market expectation of 49.9. A separate HSBC PMI survey showed China’s factory activity shrank for a third straight month in July, but the official survey was enough to boost sentiment and nudge regional share markets higher.
Technology giant Samsung Electronics Co rose 0.3 percent while auto maker Hyundai Motor Co gained 0.65 percent.
Insurance companies rose after reporting strong quarterly earnings on Wednesday. LIG Insurance Co Ltd advanced 4.5 percent, setting its highest intraday level since late January. Samsung Fire & Marine Insurance Co Ltd gained 2.9 percent.
STX Offshore & Shipbuilding Co Ltd jumped 11.6 percent, extending its recent rally as creditors agreed to a rescue plan on Wednesday. STX Corp, STX Offshore’s largest shareholder, surged 14.9 percent.
Gainers outnumbered decliners 423 to 314.
The KOSPI benchmark of core stocks gained 0.6 percent, while the junior KOSDAQ slid 0.4 percent.
(AGENCIES)
Follow our WhatsApp channel