Stocks jump as rate rise worries recede

Finance

Published: 22 Jun. 2021, 17:10

Stocks jump as rate rise worries recede

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,263.88 points on Tuesday, up 23.09 points, or 0.71 percent, from the previous trading day. [NEWS1]

Stocks rebounded Tuesday as investors speculate that the Fed's tapering timeline may be slower than expected. The Korean won rose against the dollar.

The benchmark Kospi advanced 23.09 points, or 0.71 percent, to close at 3,263.88 points.

Trading volume was moderate at about 1.6 billion shares worth some 15.2 trillion won ($13.4 billion), with gainers outnumbering losers 582 to 270.

Foreigners bought a net 319 billion won, while retail investors sold 338 billion won. Institutions offloaded a net 8 billion won.

The rebound came after local stocks slumped in the previous session over reverberating impact from the Fed's hawkish pivot last week that increased market worries about an early tapering of its accommodative policies.

New York Fed President John Williams noted the recent inflation surge is likely a temporary phase.

"The New York governor's remark seems to have eased the recent extreme spike for safe assets," Shinhan Financial analyst Choi Yoo-joon said.

In Seoul, Samsung Electronics edged up 0.13 percent to 80,000 won, and chipmaker SK hynix closed unchanged at 122,000 won.

Internet portal operator Naver lost 1.51 percent to 391,000 won, and its rival Kakao added 2.58 percent to 159,000 won.

Pharmaceutical firm Samsung Biologics decreased 0.94 percent to 846,000 won, and Celltrion lost 2.32 percent to 274,000 won.

Hyundai Motor jumped 3.43 percent to 241,000 won, and its sister company Kia gained 2.75 percent to 89,800 won. Steelmaker Posco added 1.64 percent to 341,000 won.

Chemical firm LG Chem gained 2.43 percent to 842,000 won, and rechargeable battery maker Samsung SDI edged up 0.29 percent to 683,000 won.

Online game maker NCSoft shed 0.98 percent to 812,000 won, and its rival Netmarble fell 1.86 percent to 132,000 won.

The Kosdaq gained 0.57 points, or 0.06 percent, to close at 1,011.56.

The local currency closed at 1,131.9 won against the dollar, down 2.8 from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 2.0 basis points to 1.331 percent, while the yield on the benchmark 10-year government bond added 6.1 basis points to 1.50 percent.

BY LEE TAE-HEE, YONHAP [lee.taehee2@joongang.co.kr]