Stocks close higher amid eased concerns over global recession

Finance

Published: 31 May. 2022, 17:33

Stocks close higher amid eased concerns over global recession

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,685.90 points on Tuesday, up 16.24 points, or 0.61 percent, from the previous trading day. [YONHAP]

Stocks closed higher for a third consecutive day Tuesday as foreigners scooped up local equities amid eased concerns over a global recession and China's economic slowdown, analysts said.

The local currency inched up against the dollar.

The Kospi gained 16.24 points, or 0.61 percent, to close at 2,685.90.

Trading volume was moderate at 649.8 million shares worth 13.64 trillion won ($11 billion) with gainers outpacing decliners 544 to 291.

"The expectation that U.S. inflation will peak and the easing of China's Covid-19 restrictions in Shanghai whetted investor appetite for risky assets," Seo Sang-young, a Mirae Asset Securities analyst, said.

Foreigners bought a net 1.06 trillion won worth of local stocks, the largest since the 1.12 trillion won net purchase on Aug. 31 of last year.

Both individual and institutional investors were net sellers, offloading 512.4 billion won and 583.9 billion won worth of shares each.

Chemical and auto shares led the Kospi's gain.

LG Chem jumped 5.03 percent to 585,000 won on news that it is setting up a joint venture with a Chinese miner for lithium-ion battery materials.

SK Innovation rose 2.62 percent to 215,500 won, and S-Oil also advanced 3.11 percent to 116,000 won.

Hyundai Motor closed 1.07 up to 189,500 won, and its affiliate Kia rose 2.51 percent to 85,700 won.

Samsung Electronics finished down 0.44 percent to 67,400 won, while SK Hynix gained 0.93 percent to 108,000 won.

Banks and insurers were among the decliners.

Internet-only Kakao Bank fell 1.57 percent to 40,650 won, and life insurer Samsung Life Insurance shed 0.87 percent to 68,100 won.

The local currency ended at 1,237.20 won against the dollar, down 1.40 won from Monday's close.

The Kosdaq rose 6.92 points, or 0.78 percent, to close at 893.36 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 9.1 basis points to 3.024 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo@joongang.co.kr]