Kospi rallies over 1 percent in largest daily gain since May

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,280.38 points on Wednesday, up 43.24 points, or 1.34 percent, from the previous trading day. [NEWS1]

Stocks rallied by more than 1 percent Wednesday, mostly led by strong tech gains. The won rose against the dollar.

The benchmark Kospi rose 43.24 points, or 1.34 percent, to close at 3,280.38 points. The figure marks the largest daily gain since May 10.

Trading volume was moderate at about 621 million shares worth some 12.2 trillion won ($10.7 billion), with gainers outnumbering losers 713 to 149.

Foreigners bought a net 912 billion won, the largest daily purchase since March 11, while retail investors sold 1.8 trillion won. Institutions purchased a net 873 billion won.

The Kospi got off to a solid start, tracking overnight rallies on Wall Street over optimism for strong corporate earnings.

The S&P 500 gained 0.82 percent to close at a record high, with the Dow Jones Industrial Average and the tech-heavy Nasdaq composite advancing 0.8 percent and 0.55 percent, respectively.

The Kospi gained ground as major chipmakers continued to advance for the third day. Other tech heavyweights also rose on expectations of robust earnings.

"Investors seem to have regained confidence for corporate earnings from the recent earnings reports," Mirae Asset Securities analyst Park Gwang-nam said.

In Seoul, Samsung Electronics gained 1.84 percent to 82,900 won, and chipmaker SK hynix increased 0.83 percent to 121,000 won.

Internet portal operator Naver moved up 1.17 percent to 433,000 won, with its rival Kakao jumping 3.82 percent to 149,500 won.

Pharmaceutical firm Samsung Biologics lost 0.66 percent to 903,000 percent, while automaker Hyundai Motor climbed 0.67 percent to 225,000 won. Chemical firm LG Chem added 0.35 percent to 856,000 won.

SK Innovation slumped 3.75 percent to 243,500 won after the firm decided to spin off its battery business.

The Kosdaq gained 11.82 points, or 1.14 percent, to close at 1,047.93.

The local currency closed at 1,143.6 won against the dollar, down 4.7 from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 2.4 basis points to 1.418 percent, and the return on the benchmark five-year government bond fell 0.3 basis points to 1.17 percent.

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