Seoul shares at eight-month high

Seoul shares climbed to a fresh, eight-month closing high on Tuesday, tracking a rally in global equities after better-than-expected manufacturing data from the United States provided stronger hints of recovery in global demand. The Korea Composite Stock Price Index (KOSPI) rose nearly 1 percent to close at 2,049.28 points, lifted by a rally in market heavyweights such as Samsung Electronics and Hyundai Motor that set fresh all-time and multi-month highs.
"Strong back-to-back manufacturing data from the United States and China was the main pillar behind the rally, as well as settling oil prices, a rebound in the yen, and tapering sell-offs linked to fund redemptions," said Kang Hyun-ki, an analyst at Solomon Securities.
Offshore investors underpinned the market with aggressive bets, snapping up a net 252.1 billion won ($223.5 million) worth of shares. The Institute for Supply Management said on Monday its index of US factory activity rose in March to top economists' expectations. Auto shares rallied, lifting the KRX Automobile sub-index to a five-month peak after automakers reported strong overseas sales in March to further boost optimism over earnings expectations.
"Forecast beating sales in March are likely to be followed up with a record number of cars reported sold in the United States. Moreover, a big line-up of new vehicles slated for release in April and May is already fuelling perceptions that automakers may enjoy an even better second quarter compared to the first," said Suh Sung-moon, an analyst at Korea Investment & Securities. Hyundai Motor Co jumped 6.3 percent, closing just shy of an all-time record high set last June while KIA Motors scaled to an eight-month closing high with a gain of 3.4 percent.
Samsung Electronics continued its recent earnings-driven rally, touching yet another all-time record high before easing back slightly to close 2.8 percent higher after a string of similar feats in recent sessions. Shipbuilders extended Monday's gains as worries of a rapid economic slowdown in China faded. Daewoo Shipbuilding & Marine Engineering gained 2.9 percent while Samsung Heavy Industries was up 2.4 percent. The KOSPI 200 index rose 1.3 percent while the junior KOSDAQ fell 1.1 percent. More than 587 million shares exchanged hands on the main bourse while losing shares outnumbered winners 518 to 301.