Stocks rebound as won extends losses against the dollar
Stocks rebounded Thursday as solid corporate earnings offset worries about the Fed's aggressive monetary tightening and economic uncertainties stemming from China's lockdowns and an energy crisis sparked by Russia. The won extended losses against the dollar.
The Kospi rose 28.43 points to close the session at 2,667.49. Trading volume was moderate at 885.1 billion shares worth 12.3 trillion won ($9.66 billion) with gainers outstripping decliners 491 to 366.
Foreigners and retail investors offloaded a net 36.4 billion won and 169.0 billion won worth of stocks, respectively, while institutions bought a net 194.2 billion won.
Uncertainties persist over supply chains due to China's lengthy Covid-19 lockdowns and Russia's halt of gas exports to parts of Europe, but sound corporate earnings offset such concerns, Seo Sang-young, an analyst at Mirae Asset Securities, said.
"The overnight U.S. rally fueled by tech firms' sound earnings was also favorable to the Korean market. But for further advance, the weaker won needs to be stabilized," Seo said.
Despite a stellar quarterly performance, Samsung Electronics fell 0.31 percent to 64,800 won. LG Energy Solution also slid 0.12 percent to 417,500 won.
LG Chem spiked 8.42 percent to 502,000 won, and Posco Holdings soared 4.32 percent to 290,000 won. Cosmetics firm Amorepacific jumped 9.2 percent to 178,000 won.
LG Display sank 5.75 percent to 16,400 won, and SK Telecom fell 0.18 percent to 56,700 won.
The local currency ended at 1,272.50 won against the dollar, up 7.3 won from Wednesday's close, the lowest point in over two years.
The won's sharp fall prompted a verbal intervention by the finance minister that the government will take measures, if needed, to curb its excessive depreciation.
Expectations for the U.S. Federal Reserve's aggressive monetary tightening, the fallout of China's Covid-19 lockdowns and the Ukraine war have fueled demand for the dollar.
The Kosdaq declined 3.96 points, or 0.44 percent, to close at 892.22 points.
Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 5.8 basis points to 2.926 percent, and the yield on the benchmark 10-year government bond added 10.4 basis points to 2.83 percent.
BY CHO JUNG-WOO, YONHAP [email@example.com]