South Korean stocks made strong gains on Tuesday, rebounding from a selloff in the previous three sessions that dragged the market to its lowest level in more than 15 months. The Korea Composite Stock Price Index ended 5.02 percent higher at 1,735.71 points, its biggest one-day percentage gain since January 28, 2009. KOSPI 200 December futures jumped 6.51 percent to 228.30. The KOSPI 200 spot index was up 5.19 percent to 225.29 and the junior Kosdaq market rose 5.83 percent at 433.41.
Expectations for stability in Europe helped sentiment, analysts said, but investors may remain wary until they see concrete steps by eurozone officials to prevent fallout from the zone's debt issues. Foreign investors swung to net buying, snapping up 170.5 billion won ($142.9 million) worth of shares, ending a three-day selling streak. Public pension funds extended their buying streak to 15 sessions, supporting to the overall market.
"Stocks are too cheap at this point due to excessive falls sentiment-wise," said Park Ok-hee, a market analyst at IBK Investment & Securities. Shipbuilders soared, with the world's largest shipbuilder Hyundai Heavy Industries jumping 11.2 percent and Daewoo Shipbuilding & Marine Engineering advancing 12.2 percent.
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