(LEAD) Seoul shares rise on China stimulus hopes

(ATTN: CHANGES photo; ADDS bond yields at bottom)

SEOUL, March 12 (Yonhap) -- South Korean stocks advanced Monday on rising hope for more stimulus measures from China and a robust retail sales report from the United States, analysts said. The local currency rose against the greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 19.08 points, or 0.89 percent, to finish at 2,157.18, marking the biggest daily gain since Feb. 20.

Trading volume was moderate at 345.7 million shares worth 4.11 trillion won (US$3.65 billion), with gainers far outnumbering losers 590 to 241.

Shares traded bullish on expectations that Beijing will implement more economic stimulus to prop up slowing economic growth.

U.S. retail sales rose 0.2 percent in January, surpassing the market expectation for a 0.1-percent decline, which eased concerns over the growth in the world's largest economy.

"Gains in U.S. tech stocks and analysts upgrading their prospects provided upward momentum for tech heavyweights on the local stock market," Yoon Jung-seon, an analyst at KB Investment & Securities, said. "Better-than-expected U.S. retail reports also boosted the stock market here."

Institutions scooped up a net 75.86 billion won worth of local stocks to support the index. Foreigners bought a net 930 million won, while retail investors sold a net 22.17 billion won.

Tech bluechips were in positive territory. Market bellwether Samsung Electronics gained 2.29 percent to 44,650 won, and major chipmaker SK hynix rose 1.65 percent to 67,700 won.

Shares of Hyundai Motor increased 3.72 percent to 125,500 won after Institutional Shareholder Services, a prominent shareholder advisory firm, opposed to New York-based hedge fund Elliott's call for Hyundai Motor to increase dividends to its shareholders.

South Korea's leading automaker has argued that it needs cash reserves to survive in the intense competition in the global auto industry.

In contrast, top portal operator Naver declined 2.25 percent to 130,500 won, and tobacco maker KT&G sank 3.65 percent to 105,500 won.

The local currency closed at 1,129.8 won against the U.S. dollar, up 3.9 won from Monday.

Bond prices, which move inversely to yields, ended mixed. The yield on three-year Treasurys was steady at 1.810 percent, and the return on benchmark five-year government bonds added 0.2 basis point to 1.870 percent.

ejkim@yna.co.kr
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