Seoul: South Korean stocks closed almost 1 percent higher Tuesday as investors scooped up tech shares following a recent slump in the chip industry. The local currency gained against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) shot up 29.42 points, or 0.94 percent, to close at 3,172.35. Trade volume was moderate at 304 million shares worth 8.5 trillion won (US$6.1 billion), with gainers outnumbering losers 484 to 376.
Foreign investors bought a net 389 billion won, ending their five consecutive sessions of selling. Meanwhile, individuals sold a net 347 billion won, and institutions offloaded a net 141 billion won. Major tech shares rebounded after a previous session plunge due to reports that a Chinese company had developed a new artificial intelligence (AI) chip, which had negatively impacted investor sentiment towards South Korean chipmakers.
"Following the short-term decline, investors digested the issue by analyzing its ripple effect and realistic outcome," stated Lee Kyoung-min, an analyst at Daishin Securities. Top market cap Samsung Electronics rose 2.22 percent to 69,100 won, and SK hynix, ranked second among chipmakers, climbed 1.76 percent to 260,500 won.
Battery manufacturer LG Energy Solution saw an increase of 0.29 percent to 350,000 won, whereas Samsung SDI decreased by 0.25 percent to 202,500 won. POSCO International surged 2.44 percent to 48,300 won following reports of securing a supply deal for motor cores with a North American firm.
Leading carmaker Hyundai Motor experienced a slight decline of 0.23 percent, while its affiliate Kia gained 0.66 percent, reaching 107,200 won. The local currency was valued at 1,391.0 won against the U.S. dollar at 3:30 p.m., marking an increase of 2.7 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose by 1.5 basis points to 2.45 percent, and the return on benchmark five-year government bonds increased by 2.2 basis points to 2.619 percent.