South Korean stocks jumped 2.56 percent Thursday on predictions that Europe and the United States may make a concerted effort to tackle fiscal woes and implement measures to boost growth, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index soared 46.10 points to 1,847.95, marking the second straight session of gains. Trading volume was light at 377 million shares worth 5.81 trillion won ($4.96 billion), with gainers clearly outpacing losers 675 to 169.

“The solid gain comes on expectations that the U.S. Federal Reserve may announce a new round of qualitative easing with the European Union also taking steps to stabilize the continent’s economic condition and cope with fiscal woes of member countries,” said Kwak Jung-bo, an analyst at Samsung Securities.

He said that the rise in stock prices were limited because no real details have been released on what actions will actually be implemented.

Others such as Lee Sang-jae, a senior economist at Hyundai Securities, said that despite the market’s gain, there is a need to monitor the results of Greece’s election slated for June 17, and the European summit to be held on June 28-29.

“These political events will give a clearer picture of how the market will move in the future,” he said.

In addition to overseas developments, analysts said bargain hunting for big caps helped push up the KOSPI.

Most shares in electronics, chemicals, steel and heavy industries moved up during the trading session.

Market bellwether Samsung Electronics surged 5.15 percent to 1,265,000 won, with top automaker Hyundai Motor moving up 2.78 percent to 240,000 won.

No. 2 carmaker Kia Motors added 1.56 percent to 78,100 won, with LG Chem, a leading manufacturer of rechargeable batteries, moving up 2.06 percent to 272,500 won.

Global steelmaker POSCO rose 2.10 percent to 365,000 won, with refiner SK Innovation going up 3.10 percent to 133,000 won.

Hyundai Heavy Industries, the world’s largest shipmaker, spiked 3.75 percent to 262,500 won, with SK Telecom, the country’s largest mobile carrier gaining 1.61 to 126,500 won.

The local currency finished at 1,171.5 won to the U.S. greenback, up 8.6 won from Tuesday’s close. The local financial markets were closed Wednesday for Memorial Day. 

(Yonhap News)