Stocks jump on earnings and interest rate hopes

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,293.21 points on Monday, up 11.43 points, or 0.35 percent, from the previous trading day. [YONHAP]

Stocks rebounded Monday after a two-day slump, largely on hopes for solid corporate earnings in the second quarter. The won rose against the dollar.

The bio-laden Kosdaq closed up 0.88 percent at 1,047.33 points, refreshing its 52-week high for the third consecutive session.

The benchmark Kospi added 11.43 points, or 0.35 percent, to close at 3,293.21 points.

Trading volume was moderate at about 839 million shares worth around 14.3 trillion won ($12.6 billion), with losers outnumbering gainers 460 to 372.

Foreigners bought a net 2 billion won, while retail investors offloaded 263 billion won. Institutions purchased a net 263 billion won.

Stocks got off to a solid start, led by strong advances in tech and bio shares.

Samsung Electronics and LG Electronics are scheduled to report their quarterly earnings guidance this week.

"With the April-June quarterly earnings season coming up, expectations of strong corporate earnings seem to have lifted the Kospi," HI Investment & Securities analyst Park Sang-hyun said.

Market optimism that the U.S. Federal Reserve will maintain its accommodative policies also supported stock prices, he said.

Concerns about the recent spread of the new coronavirus and its variants drove up bio stocks.

Korea's daily new virus cases stayed in the 700s for the third day in a row Monday, prompting health authorities to warn against the spread of the highly contagious delta strain.

In Seoul, Samsung Electronics rose 0.5 percent to 80,400 won, and chipmaker SK hynix advanced 0.41 percent to 123,000 won.

Pharmaceutical firm Samsung Biologics increased 1.4 percent to 867,000 won, with Celltrion jumping 2.63 percent to 273,000 won.

Internet portal operator Naver lost 0.97 percent to 410,000 won, and its rival Kakao fell 1.57 percent to 157,000 won.

Rechargeable battery maker Samsung SDI slipped 0.14 percent to 722,000 won, while chemical firm LG Chem increased 2.47 percent to 870,000 won.

The local currency closed at 1,131.8 won against the dollar, down 3.2 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 2.2 basis points to 1.462 percent, and the yield on the benchmark 10-year government bond lost 1.9 basis points to 1.43 percent.

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