S. Korean Stocks and Currency Rise
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South Korean stocks rose for a fifth day Tuesday, led by Korea Electric Power Corp., as falling interest rates and a stronger currency helped reduce the burden of debts on troubled companies.
The benchmark Kospi share index rose 9.85 points, or 2.5%, to 406.34, its highest since Dec. 17. Almost four stocks rose for each that fell, in heavy trading.
Early today the rally continued even as other Asian stock markets plunged. The Kospi index was up 2.7% at midday.
On Tuesday, Korea Electric, the state-run utility monopoly, rose 3.6% to 17,300 won, a four-week high. The company accounts for 14.5% of the Kospi index.
The South Korean currency rose for the first time in four days on Tuesday, gaining 2.3% to 1,742 to the dollar.
Falling interest rates also helped stocks. The yield on the benchmark three-year corporate bond dipped 0.63 point to 24.9%, a three-week low.
While analysts say South Korea’s economic crisis is far from over, the markets’ rallies may help bolster confidence--a necessary first step to recovery.
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