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), with advancers outnumbering 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, institutional investors bought a net 109.08 billion won worth of shares, while foreign and retail investors sold a net 17 billion won and 196.58 billion won, respectively.
Analysts noted that institutional buying helped buoy the main index, despite ongoing concerns over U.S. import tariffs and a potential slowdown in the U.S. economy. U.S. President Donald Trump's reciprocal tariffs took effect at 1:01 p.m. Thursday (Korea time), but analysts said the impact on the main index was limited, as the tariffs had already been priced into the market.
In Seoul, tech and auto stocks led the gains. Market bellwether Samsung Electronics rose 2.47 percent to 70,500 won on news of manufacturing Apple's next-generation processor at its Austin, Texas foundry. The tech giant was also supported by comments from the South Korean trade minister about potentially lower U.S. tariff rates for Korean semiconductor firms, following a trade deal between Seoul and Washington.
Chip giant SK hynix advanced 1.35 percent to 262,000 won, while top carmaker Hyundai Motor gained 0.95 percent to 212,500 won after reports of a joint development with General Motors for new models in the Americas. Top shipbuilder HD Hyundai Heavy Industries rose 1.82 percent to 475,000 won, and 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.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.2 basis points to 2.408 percent, while the return on the benchmark five-year government bonds declined 1.8 basis points to 2.551 percent.