Seoul: South Korean stocks extended their winning streak to a third consecutive session Tuesday, buoyed by foreign buying following eased concerns over an artificial intelligence (AI) bubble. The local currency lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 11.29 points, or 0.28 percent, to close at 4,117.32.
According to Yonhap News Agency, trade volume was moderate at 380 million shares worth 13.36 trillion won (US$9 billion), with losers outnumbering winners 656 to 216. Overnight, major U.S. indexes continued to show a bull run led by tech stocks, fueling expectations for a year-end Santa Claus rally. The Dow Jones Industrial Average closed 0.47 percent higher, while the tech-heavy Nasdaq composite added 0.52 percent, and the S and P 500 gained 0.64 percent.
"The KOSPI gained ground as foreign capital flowed back into the market amid eased woes over AI valuations," Lee Jae-won, an analyst at Shinhan Securities, said, noting that foreign investors especially focused on scooping up semiconductor shares. Foreigners and institutions net purchased 955 billion won and 350 billion won worth of local shares, respectively, while retail investors dumped 1.27 trillion won.
Tech giant Samsung Electronics climbed 0.9 percent to 111,500 won, while its chipmaking rival SK hynix increased 0.69 percent to 584,000 won. Shipbuilders were particularly strong on reports that U.S. President Donald Trump unveiled a plan to build a new naval warship in cooperation with Hanwha. Hanwha Ocean spiked 12.49 percent to 123,400 won, while its rivals HD Hyundai Heavy and HD Korea Shipbuilding and Offshore climbed 3.7 percent and 3.23 percent to 533,000 won and 432,000 won, respectively.
Defense giant Hanwha Aerospace gained 1.58 percent to 900,000 won, and insurance firm Samsung Life Insurance advanced 2.25 percent to 163,900 won. In contrast, leading battery maker LG Energy Solution dipped 0.39 percent to 388,000 won, and the state-run Korea Electric Power Corp. lost 1.43 percent to 48,350 won. Top automaker Hyundai Motor went down 0.69 percent to 287,000 won, and its sister Kia dropped 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., down 3.5 won from the previous session's close. Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys lost 3.6 basis points to 2.963 percent, and the return on the benchmark five-year government bonds went down 0.3 basis point to 3.242 percent.