Seoul shares jump 3.72 pct on Europe optimism

(ATTN: CLARIFIES 3rd para, ADDS bond yields at bottom) SEOUL, Sept. 16 (Yonhap) -- South Korean stocks surged 3.72 percent Friday on European policymakers' decision to support eurozone banks and foreign buying, analysts said. The local currency rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) spiked 66.02 points to 1,840.1. Trading volume was moderate at 423.9 million shares worth 7.5 trillion won (US$6.75 billion) with winners leading losers 714 to 150. "Europe's coordinated efforts by major central banks worked, buoying investor sentiment," said Kwak Jung-bo from Samsung Securities Co. "Foreigners picked up shares that suffered sharp falls in recent sessions." Foreigners shifted to net buyers, scooping up 85.9 billion won to snap an eight-session selling streak, while institutional investors lent the market further support. "The market held the view that stocks had reached bottom ahead of some big events in Europe and the U.S., including a meeting of eurozone finance ministers," said Kwak. "The European debt problem will not end in the short term but investors expect some effective actions to stabilize markets and boost the economy from the events." Shares rallied across the board, led by tech and automobile exporters and banks. Investors hunted for bargains in tech shares, with the world's biggest chipmaker Samsung Electronics soaring 3.5 percent to 798,000 won and No. 2 player Hynix Semiconductor jumping 3.79 percent to close at 21,900 won. Carmakers also made a bull run as leading automaker Hyundai Motor soared 4.79 percent to 208,000 won and its affiliate Kia Motors jumped 3.7 percent to 70,000 won. Financials were among the gainers. Top lender Woori Finance Holdings advanced 7.42 percent to 9,850 won and Shinhan Financial Group jumped 4.68 percent to 40,250 won. Korea Electric Power Corp., the state-run power provider, rose 3.03 percent to finish at 22,100 won despite a massive blackout the previous day. The local currency closed at 1,112.5 won to the greenback, up 3.9 won from Thursday's close, supported by share price surges, dealers said. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries rose 0.03 percentage points to 3.40 percent and the return on the benchmark five-year government bonds jumped 0.03 percentage points to 3.48 percent.