Korean stock markets buoyant before Chuseok break on positive data

2019.09.11 15:40:12 | 2019.09.11 15:45:41

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Positive job and export data uplifted sentiment in Korean bourses Wednesday as they break for the Chuseok holiday for the rest of the week.

The main bourse Kospi stayed positive throughout the day, ending 0.90 percent higher at 2,050.33 to extend the winning streak for the seventh trading session. The junior Kosdaq also closed up 1.46 percent at 632.34.

Latest data on jobs and exports arrived at a time no upsides to the economy had been in sight.

Korea added new jobs at the fastest pace in 29 months last month whereas the unemployment rate hit the lowest in six years. Exports, the country’s main growth engine, turned positive in the first 10 days of September after losing throughout the year.

External news also helped. U.S. President Donald Trump sacked John Bolton, hawkish national security adviser whose departure raised expectations for a breakthrough in the stalemated North Korean denuclearization talks.

On Wednesday, the buying on the Korean stocks was led by institutional investors while foreigners were sellers for profit-taking. The currency market has stayed relatively stable on Wednesday. The won finished at 1,191.0 against the U.S. dollar, up 2.3 won.

While the Korean securities markets stay closed on Thursday and Friday for Chuseok holiday, the European Central Bank will be holding its monetary policy meeting where it is expected to deliver rate cut to support sagging economy. Also, the U.S. Federal Reserve will be holding its rate setting meeting next week, with the market waiting for rate cut. The synchronized easing from the two major central banks would likely further boost sentiment in Korea.​

By Jung Hee-young and Cho Jeehyun

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