Kospi recovers on eased uncertainty after U.S. election

2018.11.08 13:37:51 | 2018.11.08 15:48:27

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South Korean stocks rebounded on Thursday, boosted by overnight gains in U.S. stocks as results of midterm election came in line with expectation.

The benchmark Kospi ended Thursday 0.67 percent higher at 2,092.63 after briefly climbing over 2,100 level. The junior Kosdaq market gained 1.66 percent to close at 693.67

The U.S. dollar fell 0.53 percent to 1,117.30 won.

The U.S. stocks rallied as the uncertainty surrounding the midterm election has now been eased up. The Dow Jones Industrial Average closed Wednesday up 2.13 percent to 26,180.30 points. The S&P 500 gained 2.12 percent to finish at 2,813.89 and the Nasdaq rose 2.64 percent to 7,570.75.

The U.S. midterm elections resulted in a split Congress as expected. Democrats won control of the House of Representatives while Republicans maintained their hold in the Senate.

“The surges in the U.S. stocks led by gains in technology, bio and pharmaceutical sectors on expectations of eased regulation and trade tensions after the elections have been boosting the Korean stock market,” said Seo Sang-young, an analyst from Kiwoom Securities Co. “Investors’ appetite for risk assets has also strengthened amid weakening U.S. dollars and modest yields on U.S. government bonds.”

By Chung Seul-gi and Choi Mira

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