South Korea’s stock market was lifted by a positive nuance from the ongoing trade negotiations between the United States and China.
The main Kospi closed Wednesday 1.95 percent higher at 2,064.71. The tech-heavy Kosdaq finished 1.68 percent up at 679.74.
The rebound came a day after an upset from top electronics stocks in their fourth-quarter earnings. In its fourth-quarter guidance, Samsung Electronics Co. reported an estimated 39 percent on-quarter plunge in its operating profit, its poorest performance in nearly two years.
Shares of Samsung Electronics closed Wednesday up 3.94 percent at 39,600 won ($35.29) and SK Hynix Inc. up 7.43 percent at 63,600 won as both foreign and institutional players targeted the undervalued chip stocks. Almost all Samsung Group units saw their share prices rise, with Samsung Electro-Mechanics Co. up 6.02 percent.
LG Electronics Inc. also recovered after reporting a 90 percent dip in its fourth-quarter income guidance. Its shares gained 2.1 percent on Wednesday after a 3.58 percent slide the day before.
U.S. stock indexes jumped on news that U.S. and Chinese officials were reportedly making progress in their trade talks in Beijing, which were extended for an unscheduled third day on Wednesday. U.S. President Donald Trump tweeted “Talks with China are going very well!” with a Chinese official describing the conversation as “constructive.”
Market uncertainty has also eased as the U.S. readies for the 2020 presidential election, making it harder for Trump to push forward with new agendas.
But as most tech stocks are suffering a downturn, analysts advise turning to less volatile sectors like cosmetics, consumer goods and media.
By Moon Il-ho and Kim Hyo-jin
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]