Stocks rebound 2% despite Omicron jitters

A screen at Hana Bank's trading room in central Seoul shows the Kospi closing at 2,899.72 points on Wednesday, up 60.71 points, or 2.14 percent, from the previous trading day. [NEWS1]

Stocks rebounded more than 2 percent Wednesday after plunging to the year's lowest point in the previous session. The won rose against the dollar.

The benchmark Kospi advanced 60.71 points, or 2.14 percent, to close at 2,899.72 points, ending a six-day slide.

Trading volume was moderate at about 553 million shares worth some 12.1 trillion won ($10.3 billion), with gainers outnumbering losers 773 to 122.

Foreigners bought a net 909 billion won and institutions purchased 91 billion won, while retail investors sold 996 billion won.

Overnight the Dow Jones Industrial Average retreated 1.86 percent, and the tech-heavy Nasdaq composite declined 1.55 percent amid growing concerns about the Omicron coronavirus variant and accelerating inflation in the world's largest economy.

"The stock markets have come under high volatility from the [virus-related] issues," said HI Investment & Securities analyst Lee Woong-chan.

Market heavyweights such as chipmakers led the overall market gains in Seoul.

Samsung Electronics jumped 4.35 percent to 74,400 won, and chipmaker SK hynix gained 2.19 percent to 116,500 won.

Internet portal operator Naver rose 2.36 percent to 390,000 won, and Kakao edged up 0.41 percent to 122,500 won.

Pharmaceutical firm Samsung Biologics increased 0.22 percent to 891,000 won, and Celltrion added 2.17 percent to 211,500 won.

LG Chem moved up 3.46 percent to 718,000 won, and battery maker SK Innovation gained 2.06 percent to 198,500 won.

Hyundai Motor climbed 2.81 percent to 201,000 won, and its sister company Kia jumped 4.37 percent to 81,200 won.

Steel maker Posco gained 6.13 percent to 277,000 won.

Kakao Bank slipped 0.61 percent to 65,200 won, and payment service provider Kakao Pay dropped 4.82 percent to 207,500 won.

The Kosdaq rose 11.52 points, or 1.19 percent, to close at 977.15.

The local currency closed at 1,179.2 won against the dollar, down 8.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.8 basis point to 1.812 percent, and the return on the benchmark 10-year government bond lost 4.9 basis points to 1.44 percent.

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