SEOUL-- South Korean stocks rose for the third consecutive session Thursday as investor sentiment improved on optimism for strong corporate earnings and the U.S. Fed's assurance that tapering would require more economic recovery from the pandemic. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 5.79 points, or 0.18 percent, to close at 3,242.65 points.
Trading volume was moderate at about 682 million shares worth some 10.3 trillion won (US$9 billion), with gainers outnumbering losers 518 to 299.
Foreigners sold a net 227 billion won, while institutions bought 259 billion won. Retail investors offloaded a net 17 billion won.
Stocks closed higher, backed by second-quarter surprise earnings by large caps, including market bellwether Samsung Electronics and other heavyweights on the KOSPI.
Investors took time to digest the Federal Open Market Committee meeting results. Fed Chairman Jerome Powell said the U.S. economy is recovering, but more progress is needed to meet the conditions for scaling back the Fed's accommodative policies.
Trading turned choppy in the late morning, however, largely as investors sought to lock in profits from the companies' estimate-beating earnings.
"Increasing tech sell-offs by foreigners seem to have reduced the KOSPI's gains," Mirae Asset Securities analyst Seo Sang-young said.
"Investors' optimism for strong corporate earnings is still playing out in the markets, but there are some concerns that the local economy may have reached its peak," he added.
In Seoul, Samsung Electronics lost 0.25 percent to 79,000 won, and No. 2 chipmaker SK hynix closed unchanged at 114,000 won.
Internet portal operator Naver decreased 0.57 percent to 439,500 won, but its rival Kakao gained 0.34 percent to 148,500 won.
Pharmaceutical giant Samsung Biologics added 0.55 percent to 911,000 won, with secondary battery maker Samsung SDI climbing 0.79 percent to 765,000 won.
Top automaker Hyundai Motor edged down 0.22 percent to 222,000 won. Leading chemical firm LG Chem closed unchanged at 835,000 won.
The local currency closed at 1,146.5 won to the U.S. dollar, up 8.1 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.431 basis points to 1.837 percent, and the return on the benchmark five-year government bond added 1.7 basis points to 1.657 percent.
Source: Yonhap News Agency