SEOUL - Seoul shares are set to rise on Thursday after solid gains on Wall Street, with news that an additional Chinese stimulus package is in the works likely to
boost sentiment and eyes on the won currency.
Conditions are favorable today. China hopes and the South
Korean government's show of determination to stem the won's further weakness will certainly help, said Hong In-young, a market analyst at HMC Investment & Securities.
An improvement in China's manufacturing sector and hopes for further economic stimulus plans by its government lifted investor sentiment worldwide on Wednesday.
Meanwhile South Korea said early on Thursday its policy was to intervene when the currency market overshoots.
However gains will likely be short-lived as fundamentals
remain weak. Also as Seoul markets reflected much of the
China-related expectations in the previous session, rises will be limited, Hong added.
The Korea Composite Stock Price Index ended
up 3.29 percent at 1,059.26 points on Wednesday.
Shipbuilders and steelmaking issues such as POSCO
and Hyundai Heavy Industries may rise on hopes China's increased infrastructure spending will boost demand for their products.
Meanwhile KT Corp may be in the spotlight after
Moody's revised its outlook on the company to stable from