South Korean financial markets Tuesday staged a dramatic comeback for the second day in a row on eased investor sentiment following overnight rallies on Wall Street, which had one of its best days in history.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 79.16 points, or 6.14 percent, to 1,367.69. Volume was heavy at 451.85 million shares worth 6.85 trillion won ($5.71 billion), with winners outpacing losers 797 to 68.
Steep gains prompted Korea Exchange (KRX), the bourse operator, to suspend program trading temporarily for the second straight day to cool the market just after the market opening.
The Korean currency closed at 1,208 won to the dollar, up 30 won from Monday's close, marking the fourth straight day of gains.
The currency has gained 187 won against the greenback over the last four sessions. The won has lost more than 22 percent versus the dollar so far this year, putting upward pressure on inflation.
Shipbuilding companies were among the best performers thanks to improving market mood. The won's recent ascent against the dollar also provided a fillip to shipbuilders which could reduce their cost of buying raw materials with the strong local currency.
Top shipyard Hyundai Heavy Industries jumped by its daily limit of 14.93 percent to 231,000 won, while smaller Samsung Heavy Industries also soared by its single-day limit of 14.83 percent to 25,550 won.
No. 2 financial service provider Shinhan Financial Group added 7.42 percent to 42,000 won and smaller Woori Finance Holdings was up 13.19 percent to close at 13,300 won. Top brokerage Mirae Asset & Securities ended up 8.23 percent at 100,000 won.
Tech issues added to the upward move, with Samsung Electronics closing up 6.87 percent at 560,000 won. Chipmaking rival Hynix Semiconductor soared 12.57 percent to 18,800 won.
On Monday, U.S. markets roared back after their worst-ever performance last week, as unprecedented global efforts to avoid a crisis helped boost depressed investor sentiment. The Dow Jones industrial average surged 11.08 percent after losing over 20 percent last week and the tech-dominated Nasdaq composite index also jumped 11.81 percent.
The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank announced Monday that they will pump unlimited amounts of U.S. dollars into commercial banks.