Seoul: South Korean stocks finished over 1 percent higher Monday on gains in chipmakers, snapping a two-day losing streak, despite heightened uncertainty over hostilities in the Middle East that continued to keep oil prices elevated. The local currency lost ground against the greenback.
According to Yonhap News Agency, after choppy trading, the Korea Composite Stock Price Index (KOSPI) rose 62.61 points, or 1.14 percent, to close at 5,549.85. Trading volume was heavy at 1.07 billion shares worth 21.6 trillion won (US$14.4 billion), with losers far outpacing gainers 642 to 250. Foreign investors sold a net 848.1 billion won, while individuals and institutions bought a net 717.5 billion won and 89.7 billion won, respectively.
"The KOSPI outperformed other Asian markets as semiconductor stocks advanced, driven by growing expectations ahead of the upcoming GTC event hosted by Nvidia and the earnings release from Micron Technology," said Lee Kyoung-min, an analyst at Daeshin Securities. Nvidia hosts its GTC conference at Silicon Valley this week, where it is expected to show off the latest advances in chips and artificial intelligence (AI) infrastructure.
Most Asian markets closed lower, as global crude prices continued to fluctuate as U.S. President Donald Trump increased pressure on nations to help reopen the Strait of Hormuz. In Seoul, most large-cap shares closed mixed, with chip shares leading the gains. Tech giant Samsung Electronics rose 2.83 percent to 188,700 won, while SK hynix added 7.03 percent to 974,000 won.
In contrast, auto shares closed in negative territory. Top automaker Hyundai Motor fell 2.13 percent to 506,000 won and its smaller affiliate Kia lost 1.4 percent to 162,000 won. The Korean won was trading at 1,497.5 won per U.S. dollar as of 3:30 p.m., down 3.8 won from the previous session. The won initially fell past the 1,500-won level against the dollar early Monday but later trimmed its losses.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys shed 3.8 basis points to 3.3 percent, and the return on the benchmark five-year government bonds was unchanged at 3.556 percent.