SEOUL: Seoul shares rose for a third straight session on Monday, as investors chased major exporters such as shipbuilders, technology and chemicals companies, betting that US policymakers will draw up economic stimulus measures.
By 0217 GMT, the Korea Composite Stock Price Index (KOSPI) was up 2.32 percent at 1,820.22 points.
"Expectations for US economic measures are driving the index higher but it could come under pressure again as a series of US and domestic economic data later this week are unlikely to tell positive stories about overall growth," said Meritz Securities analyst Park Hyung-joong.
US Fed Chairman Bernanke left the door open for future economic stimulus on Friday, lifting US stocks. He did not offer new measures to boost the economy but said it was critical for the economy's health to reduce long-term joblessness.
Hynix Semiconductor Inc jumped 5.9 percent on hopes that battered chip prices may start stabilising later this year.
Both SK Telecom Co Ltd and KT Corp rebounded sharply, up alomost 3 percent after a costly spectrum auction on Monday. SK Telecom won the auction for the 1.8 GHz spectrum for 995 billion won ($919.8 million), more than double the initial bid price.
Hyundai Heavy Industries Co Ltd climbed 8.1 percent and Samsung Heavy Industries Co Ltd rose 5.6 percent.
Overall gains in the technology sector also pushed battered LG Display Co Ltd up 3.3 percent. The stock lost by half so far this year.
LG Display said on Monday that it would cut next year's capital expenditure by a quarter amid weak demand for computers and televisions.
Copyright Reuters, 2011
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