Seoul: South Korean stocks finished higher Wednesday, driven by big-cap tech and steel shares, amid expectations for a recovery in the chip sector despite lingering concerns about U.S. President Donald Trump's sweeping tariff measures. The local currency fell against the greenback.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose 16.28 points, or 0.62 percent, to close at 2,628.62, extending the winning streak to a third straight session. Trade volume was moderate at 645.95 million shares worth 11.66 trillion won (US$8.03 billion), with winners outpacing losers 504 to 370.
Foreign investors and institutions bought a net 307.12 billion won and 285.72 billion won worth of shares, respectively, while retail investors sold a net 675.8 billion won. The market opened markedly higher, maintaining its momentum despite overnight gains on Wall Street.
Experts noted increasing optimism for a recovery in the semiconductor sector, even amid concerns about the impact of the U.S. tariff scheme. Attention is also focused on the Federal Reserve's two-day rate-setting meeting that began Tuesday (U.S. time) and Fed Chair Jerome Powell's comments on the monetary policy path and economic assessment.
Leading the index's ascent were top-cap chip shares. Market bellwether Samsung Electronics soared 1.56 percent to 58,500 won after its CEO Han Jong-hee committed to enhancing shareholder value through aggressive mergers and acquisitions. Chip giant SK hynix surged 1.23 percent to 205,500 won, while top battery maker LG Energy Solution advanced 1.69 percent to 330,500 won.
Carmakers also made gains, with top automaker Hyundai Motor jumping 1.75 percent to 204,000 won and its sister affiliate Kia adding 0.73 percent to 97,100 won. Leading steelmaker POSCO Holdings increased by 2.46 percent to 312,500 won, and major chemical firm LG Chem spiked 4.54 percent to 242,000 won.
However, bio shares experienced mixed results. Major bio firm Samsung Biologics shed 0.46 percent to 1,079,000 won, while Celltrion inched down 0.11 percent to 187,200 won. Leading defense equipment manufacturer Hanwha Aerospace lost 1.05 percent to 756,000 won on profit taking, and top portal operator Naver decreased 0.48 percent to 208,000 won.
The local currency was trading at 1,453.4 won against the U.S. dollar at 3:30 p.m., down 0.5 won from the previous session. Bond prices, which move inversely to yields, fell. The yield on three-year Treasurys rose 2.3 basis points to 2.61 percent, and the return on the benchmark five-year government bonds added 2.9 basis points to end at 2.673 percent.