Seoul shares closed higher Tuesday to extend their winning streak to a sixth day, driven by hopes for further U.S. rate cuts and China’s stimulus plan. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index added 1.14 percent, or 29.67 points, to 2,631.68.

Trading volume was slim at 345.9 million shares worth 10.1 trillion won (US$7.6 billion), with gainers surpassing decliners 605 to 264.

Institutions bought 561.6 billion won worth of local shares to offset foreign and retail investors’ combined sales of 578.2 billion won.

Overnight, major U.S. indexes gained ground as a number of the Federal Reserve’s policymakers voiced support for more rate cuts in the future.

Last week, the Fed cut its lending rate by half a percentage point to a range of 4.75 percent to 5 percent and also pledged further rate cuts.

“Investors’ sentiment was lifted by a U.S. rate cut and China’s announcement of its plan to lower its interest rates,” said Lee Kyoung-min, an analyst at Daish
in Securities.

Earlier in the day, China’s central bank unveiled its financial stimulus package to tackle deflation, including liquidity injections and rate cuts.

Lee also said investors are paying attention to the launch of Korea Exchange’s value-up index later this month. In Seoul, market bellwether Samsung Electronics gained 0.96 percent to 63,200 won, and its chipmaking rival SK hynix increased 0.93 percent to 163,500 won.

Source: Yonhap News Agency