Stocks steady on hopes for quick end to Ukraine war

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,703.52 points on Wednesday, up 4.34 points, or 0.16 percent, from the previous trading day. [YONHAP]

Stocks advanced for a third consecutive session Wednesday amid continued military tensions in Ukraine and on hopes a full-scale war may be avoided. The won rose against the dollar.

The benchmark Kospi edged up 4.34 points, or 0.16 percent, to close at 2,703.52 points.

Trading volume was moderate at about 519 million shares worth some 10.8 trillion won ($8.9 billion), with gainers outnumbering losers 645 to 228.

Foreigners offloaded a net 308 billion won, and institutions sold 133 billion won, while retail investors bought 428 billion won.

The key stock index rebounded after choppy trading, as investors remained cautious amid Ukraine tensions.

The United States and the Western countries froze some Russian assets in response to the invasion of Ukraine.

Overnight, the tech-heavy Nasdaq composite lost 1.59 percent, and the Dow Jones Industrial Average declined 1.76 percent, largely on concerns that the Ukraine tensions may push up commodity prices and stop the global economic recovery.

"Russia may face economic plight if the sanctions last long. Investors seem to be expecting that chances are getting this for a full-scale war," said Shinhan Investment researcher Choi Yoo-joon.

Samsung Electronics lost 0.55 percent to 71,700 won, while SK hynix added 1.21 percent to 125,000 won.

Naver retreated 0.31 percent to 317,000 won, and Kakao inched up 1.28 percent to 95,300 won. Carmaker Hyundai Motor decreased 2.57 percent to 170,500 won, with Kia declining 2.3 percent to 72,100 won.

Chemical firm LG Chem moved down 1.77 percent to 555,000 won, while SK Innovation climbed 3.49 percent to 207,500.

The local currency closed at 1,206.1 won against the U.S. dollar, up 3.8 won from the previous session's close.

The Kosdaq gained 14.38 points, or 1.63 percent, to close at 895.45 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 5.5 basis points to 2.187 percent, and the yield on the benchmark 10-year government bond declined 10.2 basis points to 1.72 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]