Local stocks follow Wall Street to extend gains

A screen shows the final figure for the Kospi in a dealing room at KB Kookmin Bank in the financial district of Yeouido, western Seoul, on Tuesday. [YONHAP]

Shares closed higher to extend their winning streak to a fifth session Tuesday, as investor sentiment was buoyed by hopes for new economic stimulus in the United States. The Korean won rose against the dollar.

The benchmark Kospi rose 7.90 points, or 0.34 percent, to close at 2,365.90.

Trading volume was moderate at 847 million shares worth 10.8 trillion won ($9.3 billion), with gainers outnumbering losers 426 to 400.

Foreigners scooped up a net 31.1 billion won worth of shares, while institutions offloaded a net 35.4 billion won. Retail investors sold a net 4.3 billion won.

The index got off to a solid start tracking an overnight Wall Street rally on reports of U.S. President Donald Trump's condition improving after he was treated for Covid-19.

The Seoul stock market continued to move upward on increased hopes of fresh stimulus in the world's largest economy, as talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued.

"Although talks have yet to reach an agreement, there are reports of progress, leading to growing expectations of additional U.S. stimulus measures," Eugene Investment & Securities strategist Huh Jae-hwan said.

Most large caps closed mixed in Seoul.

Market bellwether Samsung Electronics added 0.51 percent to 59,000 won, while No. 2 chipmaker SK hynix shed 0.24 percent to 83,000 won.

Pharmaceutical firm Samsung Biologics jumped 3.94 percent to 712,000 won, and Celltrion rose 1.38 percent to 258,000 won.

Chemical firm LG Chem added 2.28 percent to 674,000 won, while battery maker Samsung SDI remained unchanged at 436,500 won.

Hyundai Motor dropped 2.41 percent to 182,500 won, while its smaller affiliate Kia Motors edged up 0.2 percent to 50,600 won.

Internet portal Naver advanced 2.18 percent to 305,000 won, and its rival Kakao soared 2.97 percent to 381,500 won.

The Kosdaq rose 4.19 points, or 0.49 percent, to close at 862.58.

The local currency closed at 1,161.0 won per dollar, down 2.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds gained 2.2 basis points to 0.905 percent, and the return on 10-year bonds gained 9 points to 0.78 percent.

BY LEE JEE-YOUNG, YONHAP [lee.jeeyoung1@joongang.co.kr]