Stocks close up despite worries over China's tech regulations

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Stocks close up despite worries over China's tech regulations

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,236.86 points on Wednesday, up 4.33 points, or 0.13 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,236.86 points on Wednesday, up 4.33 points, or 0.13 percent, from the previous trading day. [NEWS1]

 
Stocks edged up Wednesday after a choppy session as hopes of strong corporate earnings pared investors' concerns about China's move to regulate tech firms. The won fell against the dollar.
 
The benchmark Kospi rose 4.33 points, or 0.13 percent, to close at 3,236.86 points.
 
Trading volume was moderate at about 857 million shares worth some 11.7 trillion won ($10.1 billion), with losers outnumbering gainers 590 to 253.
 
Foreigners sold a net 422 billion won, while retail investors bought 133 billion won. Institutions purchased a net 308 billion won.
 
The Kospi got off to a muted start as investor sentiment weakened after tech stocks plunged more than 4 percent in Hong Kong for a second straight session Tuesday.
 
Hong Kong tech retreated following China's decision to reform its tech industry and property market, which sparked market jitters around the world.
 
Overnight, the tech-heavy Nasdaq Composite slumped 1.21 percent, with the Dow Jones Industrial Average and the S&P 500 dropping 0.24 percent and 0.47 percent, respectively.
 
After fluctuating in a tight range, the Kospi rebounded toward the session's close on strong second-quarter earnings by local large caps.
 
"Investors are worried that China's regulation of its tech firms and online education industries may spread to other industries," Eugene Investment & Securities analyst Huh Jae-hwan said.
 
"But the immediate negative impact [from China's move] seems to be coming close to its end," he said.
 
In Seoul, Samsung Electronics added 0.89 percent to close at 79,200 won, while chipmaker SK hynix lost 1.72 percent to 114,000 won.
 
Internet portal operator Naver moved down 2.21 percent to 442,000 won, and carmaker Hyundai Motor decreased 1.11 percent to 222,500 won.
 
Chemical maker LG Chem closed unchanged at 835,000 won, and pharmaceutical firm Samsung Biologics slid 0.22 percent to 906,000 won.
 
The local currency closed at 1,154.6 won to the dollar, up 4.5 won from the previous session's close.
 
The Kosdaq lost 10.87 points, or 1.04 percent, to close at 1,035.68.
 
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds added 3.9 basis points to 1.419 percent, and the yield on the benchmark 10-year government bond lost 5.0 basis points to 1.24 percent.

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