SEOUL, Jan 2 (Reuters) - South Korea’s main KOSPI share index rose 1.5 percent to 2,026.40 as of 0226 GMT after the U.S. House of Representatives passed a deal to avert a “fiscal cliff” of tax hikes and spending cuts.
Stocks on the move on Wednesday include:
Daewoo Shipbuilding & Marine Engineering Co Ltd rose 6.3 percent as investors gained confidence in the shipbuilding industry amid signs of a recovery in demand.
This follows a spate of big orders for the world’s second largest shipbuilder. Last Wednesday it won a 1.68 trillion won ($1.56 billion) order to build two submarines for South Korea’s military.
On Dec. 25, it received a 1.89 trillion won order from Statoil ASA to build a fixed oil platform in the North Sea.
“Shipbuilding has recovered in the past month as a better year is expected in 2013. Daewoo is outperforming its peers as it is undervalued, and seems to have a steady stream of orders coming in,” said Uhm Kyung-ah, a sector analyst at Shinyoung Securities.
Shares of POSCO, the world’s fourth-biggest steelmaker, jumped 3.4 percent to reach their highest levels in nearly three months after China’s upbeat manufacturing data boosted hopes of demand recovery.
Shanghai steel futures extended last week’s rally and rose nearly 2 percent on Monday, buoyed by data showing factory activity in China’s vast manufacturing sector hit its fastest pace in December since May 2011, pointing to strength for the world’s second-biggest economy.
“POSCO has cut discounts on domestic steel prices, after China’s steel prices strongly rebounded. POSCO’s earnings will recover after bottoming out in the last quarter of 2012,” said Kim Kyeong-joong, an analyst at Eugene Investment & Securities. (Editing by Anand Basu)