Stocks rise as earnings boost investor optimism

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,232.53 points on Tuesday, up 7.58 points, or 0.24 percent, from the previous trading day. [NEWS1]

Stocks rebounded Tuesday as investor sentiment improved on optimism for strong corporate earnings despite the spreading new coronavirus pandemic. The won rose against the dollar.

The benchmark Kospi rose 7.58 points, or 0.24 percent, to close at 3,232.53 points.

Trading volume was moderate at about 978 million shares worth some 12.1 trillion won ($10.5 billion), with gainers outnumbering losers 534 to 287.

Foreigners bought a net 47 billion won, while retail investors sold 279 billion won. Institutions purchased a net 227 billion won.

Stocks rebounded after the Kospi closed down nearly 1 percent the previous session on market jitters about China's clampdown on education tech firms and its property market.

Local large caps continued to report robust earnings in the April-June period this week, signaling that Korea's economy is continuing to recover.

Korea's daily new coronavirus cases stayed in the 1,300s for the second day in a row Tuesday under the toughest virus curbs in the greater Seoul area.

"Estimate-beating earnings by multiple companies like SK hynix seem to have fueled expectations of robust quarterly earnings in general," said Kiwoom Securities analyst Han Ji-young.

Local stocks pared some of their earlier gains toward the session's end, ahead of the U.S. Federal Reserve meeting.

Samsung Electronics lost 0.38 percent to 78,500 won, and chipmaker SK hynix retreated 0.85 percent to 116,000 won.

Internet portal operator Naver closed unchanged at 452,000 won, with its rival Kakao increasing 0.34 percent to 148,000 won.

Pharmaceutical firm Samsung Biologics gained 1.57 percent to 908,000 won, while Celltrion lost 0.19 percent to 263,500 won.

Automaker Hyundai Motor edged up 0.22 percent to 225,000 won. Chemical firm LG Chem climbed 2.2 percent to 835,000 won.

The Kosdaq lost 1.08 points, or 0.1 percent, to close at 1,046.55.

The local currency closed at 1,150.1 won to the dollar, down 4.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 1.0 basis point to 1.38 percent, and the yield on the benchmark 10-year government bond gained 1.29 basis point to 1.29 percent.

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