Seoul shares inch up despite security, economy woes

(ATTN: ADDS bond yields at bottom)
By Kim Soo-yeon
SEOUL, July 3 (Yonhap) -- South Korean stocks closed 0.61 percent higher Friday
as investors shook off renewed geopolitical risks from North Korea's missile
launches and bleaker U.S. job reports, analysts said. The local currency gained
against the U.S. dollar.

Reversing earlier losses, the benchmark Korea Composite Stock Price Index (KOSPI)
climbed 8.56 points to 1,420.04. Volume was moderate at 392 million shares worth
4.04 trillion won (US$3.18 billion), with gainers outpacing losers 468 to 304.
"Given overnight plunges in U.S. markets, the KOSPI's gain was beyond
expectations. Foreign investors snapped up both Seoul shares and stock futures,
shrugging off bleaker U.S. job data," said Rhoo Yong-seok, an analyst at Hyundai
Securities Co.
The KOSPI started weaker as investor sentiment was hurt by worse-than-expected
U.S. job reports, renewing woes about the outlook for a global economic recovery.
But in late trading, the index reversed earlier losses as institutional and
foreign investors increased their holdings of Seoul stocks, analysts said.
The Seoul bourse also shrugged off heightened geopolitical risks. North Korea on
Thursday test-fired four short-range missiles following its second nuke test in
May and a series of missiles launches.
Chip giant Hynix Semiconductor advanced 2.4 percent to 14,950 won on expectations
that key chip prices will be on an upward trend.
NHN, the operator of South Korea's top Internet portal Naver, jumped 4.66 percent
to 191,000 won after announcing that it launched a test version of an upgraded
search engine in Japan in a bid to tap the Japanese market.
Flat panel giant LG Display rose 3.54 percent to 33,600 won and No. 2 carmaker
Kia Motors climbed 2.36 percent to 13,000 won.
The local currency ended at 1,266 won against the greenback, up 3.5 won from
Thursday's close, as offshore investors snapped up local stocks, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on
three-year Treasuries declined 0.02 percentage point to 4.04 percent while the
benchmark yield on five-year government bonds added 0.01 percentage point to 4.54
percent.
sooyeon@yna.co.kr
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