South Korean stocks closed at a record high Thursday as investors scooped up tech and steel shares, shrugging off a key rate hike, analysts said. The South Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 19.79 points, or 1.05 percent, to 1,909.75, the first close above 1,900-point mark. Volume was moderate at 438.8 million shares worth 6.97 trillion won (US$7.58 billion), with winners outpacing losers 496 to 278.
"Since the central bank's rate increase had been widely expected, investors seemed to be unaffected by the decision," said Kim Hak-kyun, an analyst at Korea Investment & Securities. "Continued cash inflow into equity-based funds and customer deposits at brokerage houses gave a boost to the key index's upward trend."
Earlier in the day, the central bank raised its key interest rate for July by 0.25 percentage point to a six-year high of 4.75 percent, the first increase in 11 months.
Tech blue chips traded higher, spurred by foreign buying. Tech bellwether Samsung Electronics rose 1.73 percent to 646,000 won and chip giant Hynix Semiconductor advanced 1.57 percent to 38,800 won.
Top steelmaker POSCO advanced 3.55 percent to 510,000 won on solid earnings outlook. POSCO plans to release its earnings reports on Monday.
Financial shares gained ground on hopes for strong bottom lines. Top lender Kookmin Bank rose 0.12 percent to 85,400 won and No. 2 financial services company Shinhan Financial Group climbed 3.47 percent to 65,600 won.