KOSPI Rebounds to 670-Level

The Korea Composite Stock Price Index (KOSPI) has hit a yearly high, regaining the 670 level in six months.

The KOSPI on June 17 closed at 674.66, the highest level since Dec. 23 last year when it closed at 691.38. It gained 16.64 points or 2.56% compared to the previous day. The KOSDAQ also jumped 0.61 points or 1.22% to 50.63, the highest figure since 51.16 points on Dec. 20 last year.

The nation`s stock prices jumped along with a surge on Wall Street the previous day. On June 16 (local time) U.S. stock prices surged 2% with the Dow Jones Industrial Average and S&P 500 index hitting new highs.

Foreign investors have led the stock hike by purchasing stocks at 287.1 billion won on the exchange and 8.1 billion won on the KOSDAQ.

Along with this, investors felt relieved to buy stocks due to a decision by the creditors of SK Global to let the company normalize its management operations, which was one of the main uncertainties that the nation has been facing.

Stock prices in other Asian countries also soared. Japan`s Nikkei gained 193.17 yen or 2.19% to 9,033.0 yen, rebounding to the 9,000-level for the first time since Dec.4 last year.

In addition, shares in Taiwan and Hong Kong rallied 1.65% and 1.46%, respectively.

Meanwhile, the won-to-dollar exchange rate lost 6.3 won to close at 1,184.0 won, falling to the 1,180-won-level in four months.

The yield for benchmark 3-year-bonds rose 0.03% to 3.98%.

Chan-Sun Hong Suk-Ho Shin hcs@donga.com kyle@donga.com