Big rebound for Kospi after tapering fears subside

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,090.21 points on Monday, up 29.7 points, or 0.97 percent, from the previous trading day. [YONHAP]

Stocks rebounded Monday, rising nearly 1 percent, helped by robust economic data and easing concerns about the U.S. Fed's tapering timeline. The won rose against the dollar.

The benchmark Kospi advanced 29.7 points, or 0.97 percent, to close at 3,090.21 points.

Trading volume was moderate at about 564 million shares worth some 13.2 trillion won ($11.2 billion), with gainers outnumbering losers 788 to 94.

Foreigners sold a net 29 billion won, while institutions bought 609 billion won and offloaded a net 572 billion won.

Stocks got off to a bullish start as Korea's exports jumped 40.9 percent on-year in the first 20 days of August on high demand for chips, autos and petroleum goods.

The stock market extended its gains, aided by soothing comments by Dallas Fed President Robert Kaplan, known for his hawkish view about the U.S. tapering timeline. He said he is open to adjust his stance if the new coronavirus persists and hurts economic recovery.

"Stocks seem to have rebounded as investors stand on common ground that they have overreacted over the Fed's tapering timeline issue," said HI Investment & Securities analyst Park Sang-hyun.

In the past two sessions, the Kospi plunged by 3.12 percent over the Fed's latest minutes hinting at the possibility of starting the tapering as early as the fourth quarter of the year

Most large caps closed higher in Seoul.

Samsung Electronics added 0.83 percent to 73,300 won, and chipmaker SK hynix advanced 0.49 percent to 103,000 won.

Internet portal operator Naver moved up 1.66 percent to 429,500 won, with pharmaceutical firm Samsung Biologics increasing 2.33 percent to 1,009,000 won.

Chemical firm LG Chem tumbled 11.14 percent to 798,000 won as U.S. carmaker General Motor said it will expand the recall of Chevy Bolt electric vehicles, equipped with LG Chem's batteries.

Automaker Hyundai Motor climbed 1.24 percent to 204,000 won, and KakaoBank retreated 1.32 percent to 89,800 won.

The Kosdaq gained 25.28 points, or 2.61 percent, to close at 993.18.

The local currency closed at 1,173.7 won against the dollar, down 5.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 2.4 basis points to 1.388 percent, and the yield on the benchmark 10-year government bond gained 1.5 basis points to 1.25 percent.

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