SKorean shares close over 2 percent higher on falling oil prices - UPDATE

SEOUL (Thomson Financial) - South Korean shares closed higher on Thursday, jumping more than 2 percent in an extension of a previous rally, with foreign investors being net buyers for the first time in 34 days after oil prices dropped sharply overnight. Foreign investors purchased local shares worth a net 200 billion won, turning around from a position of net selling since June 9 that led to net sales worth 9 trillion won worth of shares. Broad sentiment was buoyed by falling oil prices and easing concerns over the U.S. financial sector, particularly about troubled mortgage lenders Fannie Mae and Freddie Mac. 'Investors are now returning to risky investments as a sustained fall in oil prices helps ease fears of global inflation and recession,' said Park Mun-kwang, an analyst at Hyundai Securities. Oil prices dropped more than... [read full story]