SEOUL– South Korean stocks ended higher Tuesday, as a rise in big-cap tech shares offset profit-taking from recent sharp gains. The Korean won rose against the U.S. dollar.
After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) added 5.68 points, or 0.23 percent, to close at 2,480.33.
Trading volume was moderate at about 608 million shares worth some 9.14 trillion won (US$6.93 billion), with gainers outnumbering losers 596 to 282.
Retail investors bought a net 326.92 billion won worth of shares, while foreigners and institutions shed a net 264.14 billion won and 80.0 billion won, respectively.
The market opened higher, despite U.S. losses, and had moved within a tight range throughout the session before ending in positive terrain.
“Investors digested major economic developments, including inflation data and messages on U.S. interest rate hikes, and have sought direction after the recent rally,” Daeshin Securities analyst Lee Kyung-min said.
On Monday (U.S. time), Federal Reserve Vice Chair Lael Brainard stressed the commitment to rein in high inflation by saying that the U.S. central bank will soon likely slow interest rates hikes, though it has “additional work to do.”
Expectations for a better Sino-U.S. relationship after the first in-person summit between U.S. President Joe Biden and Chinese President Xi Jinping earlier in the day also improved investor sentiment, according to analysts.
Chipmakers rose to lead the overall upturn of the index.
Market bellwether Samsung Electronics grew 0.81 percent to 62,400 won, and chip giant SK hynix added 0.77 percent to 91,600 won.
Bio shares ended in positive terrain, with Samsung Biologics increasing 0.55 percent to 906,000 won and Celltrion advancing 1.62 percent to 188,000 won.
Internet giant Naver jumped 1.86 percent to 192,000 won, and Kakao, the operator of the popular mobile messenger Kakao Talk, rose 0.34 percent to 58,700 won.
But battery maker LG Energy Solutions fell 1.32 percent to 596,000, and No. 1 chemical firm LG Chem sank 2.20 percent to 710,000 won.
Carmakers also went down on profit-taking. Top automaker Hyundai Motor shed 0.85 percent to 174,500 won, and its affiliate Kia skidded 2.0 percent to 68,500 won.
No. 1 steelmaker POSCO lost 1.02 percent to 291,500 won.
The local currency ended at 1,317.6 won against the U.S. dollar, up 8.3 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 9.7 basis points to 3.753 percent, and the return on the benchmark five-year government bond fell 11.2 basis points to 3.816 percent.
Source: Yonhap News Agency