Seoul: South Korean stocks experienced a significant rebound as they climbed more than 1.5 percent on Tuesday, breaking a three-session losing streak driven by bargain hunting and a reduction in political uncertainties. The local currency also appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 40.27 points, or 1.62 percent, closing at 2,521.39. This recovery followed a 3 percent drop the previous day and marked the end of a decline that persisted for three consecutive sessions since Thursday.
Trade volume was relatively low, with 450.3 million shares traded, valued at 6.9 trillion won (US$4.69 billion). The market saw more gainers than decliners, with 712 stocks rising compared to 182 falling.
Institutional and individual investors were at the forefront of the market's rise, purchasing net amounts of 180.9 billion won and 86.1 billion won, respectively. In contrast, foreign investors sold a net 389.8 billion won. Analysts pointed out that investors engaged in bargain hunting, propelling the index upward after recent declines.
Moreover, market sentiment was bolstered by the Constitutional Court's announcement that it would deliver its long-awaited ruling on the impeachment of President Yoon Suk Yeol this Friday, easing political concerns.
Major stocks concluded the day in positive territory. Tech giant Samsung Electronics rose by 1.73 percent to reach 58,800 won, and SK hynix advanced 3.3 percent to 197,000 won.
Leading automaker Hyundai Motor saw an increase of 0.71 percent to 198,600 won, while its affiliate Kia gained 0.98 percent to 93,200 won.
Kakao, the operator of the popular mobile chat app KakaoTalk, surged 7.93 percent to 42,200 won, and major game publisher NCSOFT climbed 1.34 percent to 151,400 won.
In the cosmetics sector, Amorepacific jumped 4.44 percent to 105,900 won. Hanwha Aerospace soared 7.34 percent to 673,000 won following the company's announcement that its executives had purchased 9 billion won worth of treasury shares.
Conversely, battery stocks struggled, with industry leader LG Energy Solution falling 1.94 percent to 328,000 won and POSCO Future M declining 0.91 percent to 119,200 won.
The local currency strengthened, trading at 1,471.9 won against the U.S. dollar at 3:30 p.m., a gain of 1 won from the previous session.
Bond prices ended the day mixed, as the yield on three-year Treasurys rose by 1.2 basis points to 2.581 percent, while the yield on the benchmark five-year government bonds dropped by 1.4 basis points to finish at 2.659 percent.