Seoul: South Korean stocks closed higher Thursday, tracking overnight gains on Wall Street, with strong performances in tech and auto shares leading the advance. The Korean won also rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 29.54 points, or 0.92 percent, to close at 3,227.68.
According to Yonhap News Agency, trade volume was moderate at 324.1 million shares worth 11.16 trillion won (US$8.08 billion). Advancers outnumbered decliners 459 to 406. Overnight, the Dow Jones Industrial Average gained 0.18 percent, while the tech-heavy Nasdaq Composite rose 1.21 percent. In the local market, institutions bought a net 109.08 billion won worth of shares, while foreign investors and retail investors sold a net 17 billion won and 196.58 billion won, respectively.
Analysts said institutional buying helped buoy the main index, despite ongoing concerns over U.S. import tariffs and a potential slowdown in the U.S. economy. In Seoul, tech and auto stocks led the gains. Market bellwether Samsung Electronics rose 2.47 percent to 70,500 won on news that the chipmaker will manufacture Apple Inc.'s next-generation processor at its foundry in Austin, Texas.
The tech giant also got a boost from the South Korean trade minister's comments that Korean semiconductor firms will likely face lower U.S. tariff rates than global peers and competitors, citing the latest trade deal signed last week between Seoul and Washington, in which the latter agreed to offer most favored nation (MFN) status to South Korean chipmakers when it comes to import tariffs on semiconductors. U.S. President Donald Trump has said his administration may impose 100 percent tariffs on all chip and semiconductor imports.
Chip giant SK hynix advanced 1.35 percent to 262,000 won. Top carmaker Hyundai Motor gained 0.95 percent to 212,500 won following reports that the Korean automaker and General Motors will jointly develop five new models for the U.S. and other markets in the Americas. Top shipbuilder HD Hyundai Heavy Industries rose 1.82 percent to 475,000 won, while tech firm Kakao spiked 11.97 percent to 63,600 won. Leading battery maker LG Energy Solution edged up 0.65 percent to 386,500 won.
Among decliners, major steelmaker POSCO Holdings slipped 0.34 percent to 297,500 won, and top refiner SK Innovation dropped 0.46 percent to 108,500 won. The local currency was quoted at 1,381.20 won against the greenback at 3:30 p.m., up 8.3 won from the previous session.