Won, stocks and bonds rally together in Korea on rate hopes

Shares ended higher Monday amid expectations of slower U.S. rate hikes. The won sharply rose against the dollar. The Kospi rose 60.22 points, or 2.63 percent, to close at 2,350.19 points. Trading volume was moderate...

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,350.19 points on Monday, up 60.22 points, or 2.63 percent, from the previous trading day. [NEWS1]

Shares ended higher Monday amid expectations of slower U.S. rate hikes. The won sharply rose against the dollar.

The Kospi rose 60.22 points, or 2.63 percent, to close at 2,350.19 points.

Trading volume was moderate at about 334.74 million shares worth some 6.9 trillion won ($5.2 billion), with gainers outnumbering losers 799 to 93.

The Dow Jones Industrial Average rose 2.1 percent to 33,630.61 points on Friday, and Nasdaq Composite jumped 2.6 percent to 10,569.29.

Investors scooped up local stocks as they expect a slowdown in U.S. wage growth and an unexpected contraction in services activity may prod the Federal Reserve to go easy on its aggressive rate hike plans, analysts said.

Foreigners and institutions bought a combined 1.4 trillion won worth of stocks, offsetting individual stock selling valued at 1.39 trillion won.

In Seoul, most market heavyweights closed higher.

Samsung Electronics Co. rose 2.9 percent to 60,700 won, chipmaker SK hynix jumped 3.5 percent to 86,000 won, carmaker Hyundai Motor gained 2.8 percent to 164,000 won, while Kia advanced 4.23 percent to 64,100 won. Car battery maker LG Energy Solution was up 4.5 percent to 464,000 won.

Samsung Biologics inched forward 0.5 percent to 812,000 won and Celltrion gained 1.53 percent to 166,000 won.

Samsung SDI rose 2.39 percent to 600,000 won, Lotte Chemical gained 3.92 percent to 185,000 won and LG Chem jumped 5.05 percent to close at 624,000 won.

Among decliners, wireless services provider SK Telecom fell 0.2 percent to 47,500 won.

The local currency closed at 1,243.50 won against the dollar, down 25.10 won from the previous session's close.

The Kosdaq gained 12.27 points, or 1.78 percent, to close at 701.21 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 10.1 basis points to 3.580 percent, and the yield on the benchmark 10-year government bonds lost 15.7 basis points to 3.561 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]