Seoul shares rise on China recovery hope

• Published date: 02 March 2023
• Publication title: The Korea Times

Korean stocks closed higher Thursday, snapping a two-day losing streak, as data suggesting China's economic recovery from the COVID-19-driven slowdown helped spur investor appetite for risky assets. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 15 points, or 0.62 percent, to close at 2,427.85. Trading volume was moderate at 422.3 million shares worth 9.6 trillion won ($7.3 billion), with gainers outpacing decliners 495 to 389.

"The January manufacturing data in China came as a surprise, which gave a boost to the anticipation over an economic recovery in China following its COVID-19 reopenings," said Han Ji-young, an analyst at Kiwoom Securities.

But selling pressure is still strong on worries that the U.S. Federal Reserve will likely stick to its aggressive interest rate hikes for some time, Han said.

Data released Wednesday showed that the manufacturing activity in Asia's largest economy posted its highest improvement in more than a decade in February, with the services sector also showing a strong performance.

China, Korea's...