Stocks close higher on optimism over corporate earnings

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,668.31 points on Tuesday, up 11.18 points, or 0.42 percent, from the previous trading day. [YONHAP]

Stocks closed higher Tuesday, snapping a two-day losing streak, on optimism over corporate earnings amid lingering concerns about the potential economic impact from the widely expected U.S. monetary tightening. The local currency fell against the dollar.

The Kospi climbed 0.42 percent, or 11.18 points, to close at 2,668.31. Trading volume was heavy at 873 million shares worth 10.64 trillion won ($8.49 billion) with gainers outstripping decliners 550 to 316.

The Kospi tracked the overnight rally on Wall Street, which was led by big tech firms.

"The rebound in U.S. stocks is a positive for the Korean market, as it reflects high expectations for corporate earnings and investor appetite for bargain hunting after the recent fall," Seo Sang-young, an analyst at Mirae Asset Securities.

"Concerns over an economic slowdown in light of the Fed's monetary tightening issue and China's lockdown have not eased, but such optimism over the earnings season is expected to help boost the stock market," Seo said.

Foreigners offloaded a net 249.5 billion won worth of stocks, and retail investors also sold off a net 63.9 billion won. Institutional investors scooped up a net 276.7 billion won.

Biopharmaceutical company Celltrion surging 8.04 percent to 168,000 won and vaccine maker SK Bioscience adding 1.1 percent to 137,500 won.

Hyundai Motor advanced 2.75 percent to 187,000 won, and its affiliate Kia soared 4.9 percent to 83,500 won on the back of robust quarterly earnings reported the previous day.

SK hynix rose 2.78 percent to 111,000 won, while Samsung Electronics shed 0.39 percent to 66,100 won.

Battery maker LG Energy Solution dipped 2.19 percent to 423,500 won.

The local currency ended at 1,250.80 won against the dollar, up 0.9 won from Monday's close.

The Kosdaq gained 11.32 points, or 1.26 percent, to close at 911.16 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds declined 2.5 basis points to 2.859 percent, and the yield on the benchmark 10-year government bond dropped 6.8 basis points to 2.82 percent.

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