(RTTNews) - The South Korean stock market was trading higher on Monday, amid volatility, snapping a five-day losing streak. Wall Street’s rally on Friday and a steep fall in crude oil prices boosted investor sentiment. At 10:48 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was up 7.47 points or 0.5% at 1,504.38 after closing below the 1,500 mark for the first time in sixteen months on Friday.

In the currency market, the South Korean won fell to its weakest in nearly four years against the dollar in early trade on persistent credit worries and foreign selling in the country’s stock markets. The won was quoted at 1,071.9 a dollar, down from Friday’s local close of 1,062.5a dollar.

On Friday, the U.S. market finished with sharp gains, as oil prices tumbled and Federal Reserve Chairman Ben Bernanke said inflation pressures are likely to moderate. The Dow jumped 1.73%, the broader S&P 500 rose 1.13% and the Nasdaq climbed 1.44%.

Oil prices tumbled $6.59 a barrel or 5.43% on Friday, the biggest one-day percentage plunge in nearly four years, following a rebounding dollar and a Russian troop pullback from Georgia. The contract for October delivery settled at US$114.59 a barrel. In the Asian session Monday, oil was down 14 cents to US$114.45 a barrel by 10:23 p.m. ET.

On the economic front, a government report showed that around 3 out of 10 households in South Korea spent more than they earned during the second quarter of this year amid rising inflation and increased costs of buying necessities. According to a report by the National Statistical Office, 28.1% of South Korean households reported that they spent more than they earned during the April-June period, up from 27.8% recorded a year earlier.

A weakening won and a fall in crude oil prices supported exporters and transporters.

In the tech space, Hynix Semiconductors rose 1.9%, market heavyweight Samsung Electronics added 0.2% and LG Display advanced 1.4%, but LG Electronics declined 1.4%.

Automaker Hyundai Motor jumped 3.8%, but steelmaker POSCO fell 1.3%. Among transporters, Hanjin Shipping edged up 0.3%, Korean Air Lines gained 1.8% and Asiana Airlines moved up 1.1%.

In the financial sector, top lender KookMin Bank gained 2.2% after its shareholders approved the retail bank’s plan to restructure itself into a holding company. Woori Finance surged 4.0% and Shinhan Financial Group climbed 1.8%. Top brokerage Samsung Securities lost 1.8% and Mirae Asset Securities dropped 1.3%.

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Posted in Categories: Economy, Releases.

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