South Korean stocks soared to a seven-month high on Wednesday as exporter shares posted firm gains on the back of optimism over the U.S. economy, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI climbed 20.04 points, or 0.99 percent, to 2,045.08, the highest close since 2,066.26 on Aug. 3. Trading volume was heavy at 534.4 million shares worth 6.3 trillion won ($5.6 billion), with gainers outnumbering decliners 461 to 356.

“Better-than-expected retail sales data and the Fed’s remarks on improving employment raised hopes over a recovery in U.S. consumer confidence,” said Lim Dong-lak, an analyst at Hanyang Securities Co.

“Favorable liquidity conditions and Italy’s successful debt sale also lifted investor sentiment,” he said, adding that the KOSPI may surpass the 2,100-mark if it breaks through technical resistance.

Spearheading the gains were technology shares. Market bellwether Samsung Electronics gained 2.38 percent to a record close of 1,250,000 won and its smaller rival LG Electronics rose 1.98 percent to 92,900 won.

Financials lent support, with KB Financial advancing 3.85 percent to 43,150 won. State-run Woori Finance Holdings rose 4 percent to 13,000 won on anticipations the government may finally succeed in privatizing the top banking group by assets.

Major shipbuilders also ended bullish on hopes for overseas orders, with Daewoo Shipbuilding & Marine Engineering surging 4.54 percent to 35,700 won.

In contrast, machineries closed lower on concerns over slowing growth in China. Doosan Infracore ended down 1.65 percent at 23,900 won.

The local currency closed at 1,126.1 won against the greenback, down 4.6 won from Tuesday’s close, as the U.S. currency strengthened following the latest Federal Open Market Committee meeting, dealers said. 

(Yonhap News)