Shares rise on tech, auto gains as investors await earnings results

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,412.96 points on Tuesday, up 9.27 points, or 0.39 percent, from the previous trading day. [YONHAP]

Shares ended higher Tuesday helped by tech and auto gains, with investors awaiting the Federal Reserve's rate decision and major firms' earnings results this week. The won rose against the dollar.

The benchmark Kospi rose 9.27 points, or 0.39 percent, to close at 2,412.96.

Trading volume was moderate at 409.32 million shares worth 6.15 trillion won ($4.7 billion), with gainers outstripping losers 442 to 358.

Institutions bought a net 46 billion won worth of stocks and foreigners a net 1.5 billion won. Retail investors offloaded a net 47.3 billion won.

All eyes are now on the upcoming rate decision by the U.S. central bank Wednesday amid rising inflation and earnings results by tech companies, such as Apple, Microsoft, Amazon and Samsung Electronics, analysts said.

The Fed is widely expected to raise borrowing costs by 0.75 percentage points this week. That would put the U.S. benchmark rate in a range of 2.25-2.5 percent, the highest since 2018 before the Covid-19 pandemic.

In Seoul, tech and auto stocks led the overall market advance.

Samsung Electronics rose 1 percent to 61,700 won, and chipmaker SK hynix climbed 0.5 percent to 100,500 won.

Hyundai Motor remained flat at 196,000 won, while its affiliate Kia gained 0.2 percent to 82,500 won.

Among decliners, Korean Air Lines fell 0.2 percent to 25,050 won and state-run Korea Gas declined 0.6 percent to 36,700 won.

Internet portal operator Naver lost 1.21 percent to 245,000 won, and Kakao dropped 0.82 percent to 72,400 won. Cosmetics firm Amorepacific lost 0.4 percent to 137,500 won.

Among bio stocks, Samsung Biologics fell 0.12 percent to 828,000 won, while Celltrion gained 0.54 percent to 186,000 won.

The local currency ended at 1,307.60 won against the dollar, down 6.10 won from the previous session's close.

The Kosdaq gained 0.24 points, or 0.03 percent, to close at 789.93 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 3.3 basis points to 3.120 percent, and the yield on the 10-year government bond advanced 4.5 basis points to 2.80 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]