Shares rise as recovery hopes outweigh trade fears
Stocks closed higher Tuesday as hopes of an economic recovery offset renewed concerns over political tensions between the world's two largest economies. The won fell against the dollar.
The Kospi rose 14.85 points, or 0.71 percent, to close at 2,108.33. Trading volume was moderate at about 700 million shares worth some 11.6 trillion won ($9.7 billion), with gainers outnumbering losers 594 to 252.
Foreigners sold a net 72 billion won, and retail investors offloaded a net 165 billion won. Institutions bought a net 240 billion won, snapping their nine-session selling streak.
The index's rise was mostly attributed to hopes of a recovery, along with a counter-sentiment that followed a sharp fall in the previous session, according to an analyst.
"The Korean stocks are on a rebound in resistance to the large fall from the previous session, but the hike will be limited due to the growing [global economic] uncertainties," Kiwoom Securities analyst Seo Sang-young said.
U.S. Commerce Secretary Wilbur Ross said on Tuesday that regulations for providing preferential treatment to Hong Kong over China were suspended.
The index got off to a strong start, thanks to a record gain in pending home sales in the U.S.
Positive economic indices also helped offset fears of economic setbacks stemming from the recent surge in new coronavirus cases.
Most large caps closed higher.
Samsung Electronics added 0.76 percent to 52,800 won, with SK hynix surging 1.79 percent to 85,100 won.
Samsung BioLogics retreated 1.15 percent to 775,000 won, while LG Chem gained 0.20 percent to 490,500 won. Celltrion declined 1.61 percent to 306,000 won.
The local currency closed at 1,203.00 won against the dollar, down 4.40 won from the previous session's close.
The secondary Kosdaq was up 3.28 points, or 0.45 percent, to close at 737.97.
Bond prices, which move inversely to yields, rose. The return on three-year bonds shed 0.3 basis points reaching 0.840 percent, and the return on the benchmark 10-year government bond inched down 2.2 basis points to reach 0.62 percent.
BY CHEA SARAH, YONHAP [firstname.lastname@example.org]