Stocks rally for a second straight day on global rebound

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,096.81 points on Tuesday, up 40.28 points, or 1.32 percent, from the previous trading day. [YONHAP]

Stocks advanced for the second straight day Tuesday to finish just short of the 3,100-point mark in tandem with global stock rallies and eased concerns over China's liquidity squeeze. The won fell against the dollar.

The benchmark Kospi rose 40.28 points, or 1.32 percent, to close at 3,096.81 points.

Trading volume was moderate at about 874 million shares worth around 18.9 trillion won ($16.9 billion), with gainers outnumbering losers 664 to 190.

Foreigners bought a net 193 billion won, while retail investors sold a net 190 billion won. Institutions offloaded a net 11 billion won.

The Kospi gained ground as overnight U.S. stock rallies boosted investor sentiment in local financial markets.

"Investors' appetite for risky assets remained high as the world's central banks continued to signal that they would continue to support monetary easing policy," Kiwoom Securities analyst Seo Sang-young said.

"China's short-term money rates also steeply fell, boosting foreign buying in the local stock market," he said.

Most large caps gained in Seoul, with tech heavyweights leading the way.

Samsung Electronics rose 1.69 percent to 84,400 won, and chipmaker SK hynix moved up 4 percent to 130,000 won.

Internet portal giant Naver jumped 4.17 percent to 362,500 won, and its rival Kakao advanced 0.91 percent to 445,500 won.

Chemical maker LG Chem added 1.58 percent to 965,000 won, and rechargeable battery maker Samsung SDI climbed 0.94 percent to 752,000 won.

Pharmaceutical firm Samsung Biologics gained 1.6 percent to 826,000 won, while Celltrion lost 4.18 percent to 355,500 won.

Hyundai Motor added 0.84 percent to 240,500 won while Kia lost 1 percent to close at 89,100 won. Auto parts maker Hyundai Mobis dropped 0.3 percent to 334,500 won.

Steelmaker Posco gained 3.95 percent to 263,000 won.

The Kosdaq also rose 6.89 points, or 0.72 percent, to close at 963.81.

The local currency was trading at 1,117.7 won to the dollar, up 1.2 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The return on the three-year bond lost 1.5 basis points to close at 0.98 percent, and the return on the 10-year bond added 1.4 basis points to close at 1.07 percent.

BY CHEA SARAH, YONHAP [chea.sarah@joongang.co.kr]