Seoul: South Korean stocks closed higher on Wednesday as investors searched for momentum ahead of key U.S. employment data set to be revealed later this week. The Korean won fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 12.07 points, or 0.38 percent, to close at 3,184.42. Trade volume was moderate at 321.7 million shares worth 8.6 trillion won (US$6.2 billion). Winners outnumbered losers 502 to 370.
Foreign investors were net buyers for a second consecutive session, purchasing 435 billion won. In contrast, institutional investors sold off a net 375.6 billion won, while retail investors offloaded a net 154.6 billion won. Lee Kyoung-min, an analyst at Daishin Securities, noted that the KOSPI's rise was limited as investors adopted a cautious approach amid tariff-related uncertainties and the anticipation of the United States' August employment data release on Friday.
The gains were led by semiconductors, pharmaceuticals, and nuclear shares. Notably, top cap Samsung Electronics advanced 1.01 percent to 69,800 won, while its rival SK hynix added 0.77 percent to 262,500 won. Pharmaceutical firm Samsung Biologics moved up 1.5 percent to 1,012,000 won, and nuclear power plant builder Doosan Enerbility jumped 3.31 percent to 62,400 won.
Conversely, shipbuilding shares saw a decline as investors engaged in profit-taking. Hanwha Ocean shed 4.46 percent to 117,700 won, and HD Hyundai Heavy Industries slid 1.75 percent to 505,000 won.
The Korean won was quoted at 1,392.3 won against the greenback as of 3:30 p.m., down 1.3 won from the previous session's close. Bond prices, which move inversely to yields, also closed lower. The yield on three-year Treasurys added 2.5 basis points to 2.475 percent, and the return on the benchmark five-year government bonds went up 3.5 basis points to 2.654 percent.