South Korea’s won headed for a third weekly advance as a pickup in the economy prompted overseas investors to add to their holdings of the nation’s stocks. Government bonds gained.
Gross domestic product increased last quarter at the fastest pace in a year and export growth accelerated in August, reports showed this month. The finance ministry said today it will focus on boosting jobs and investment to aid the recovery. Global funds bought more local equities than they sold for a 16th straight day, the longest streak of net purchases since December 2012, according to stock exchange data.
“We expect GDP to increase in the next two quarters and there’s better earnings visibility now for Korean companies compared with, say, in Southeast Asia,” said Huh Jae-Hwan, an economist in Seoul at Daewoo Securities Co. “Korean equities are cheap to foreign investors.”
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