Seoul: South Korean stocks continued their upward trend for the third consecutive session on Tuesday, supported by foreign investment following reduced concerns over an artificial intelligence (AI) market bubble. The local currency, however, depreciated against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased by 11.29 points, or 0.28 percent, to finish at 4,117.32.
According to Yonhap News Agency, trade volume was moderate with 380 million shares valued at 13.36 trillion won (US$9 billion) exchanged, and the number of losing stocks exceeded that of the gaining ones, with 656 losers compared to 216 gainers. In the United States, major stock indexes continued their bullish trend, driven by technology stocks, raising hopes for a year-end Santa Claus rally. The Dow Jones Industrial Average closed 0.47 percent higher, while the technology-heavy Nasdaq composite and the S and P 500 rose by 0.52 percent and 0.64 percent, respectively.
"The KOSPI gained ground as foreign capital flowed back into the market amid eased woes over AI valuations," commented Lee Jae-won, an analyst at Shinhan Securities, highlighting that foreign investors particularly targeted semiconductor shares. Foreign and institutional investors net purchased local shares worth 955 billion won and 350 billion won, respectively, while retail investors sold 1.27 trillion won in shares.
In the tech sector, Samsung Electronics saw a rise of 0.9 percent to 111,500 won, and SK hynix, a competitor in chip manufacturing, increased by 0.69 percent to 584,000 won. The shipbuilding industry showed significant strength following reports that U.S. President Donald Trump announced a plan to construct a new naval warship in collaboration with Hanwha. Hanwha Ocean's shares surged by 12.49 percent to 123,400 won, while HD Hyundai Heavy and HD Korea Shipbuilding and Offshore saw gains of 3.7 percent and 3.23 percent, closing at 533,000 won and 432,000 won, respectively.
Defense sector leader Hanwha Aerospace increased by 1.58 percent to 900,000 won, while Samsung Life Insurance, an insurance company, advanced by 2.25 percent to 163,900 won. In contrast, LG Energy Solution, a prominent battery manufacturer, declined by 0.39 percent to 388,000 won, and Korea Electric Power Corp., a state-run entity, fell by 1.43 percent to 48,350 won. Leading automaker Hyundai Motor dropped by 0.69 percent to 287,000 won, with its affiliate Kia decreasing by 0.74 percent to 120,200 won.
The Korean won was quoted at 1,483.6 won against the U.S. dollar at 3:30 p.m., decreasing by 3.5 won compared to the previous session's close.