Kospi losing streak ends as investors scoop up oversold stocks

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,367.85 points on Tuesday, up 12.19 points, or 0.52 percent, from the previous trading day. [YONHAP]

Seoul stocks ended their four-day losing streak on Tuesday as investors scooped up oversold stocks ahead of the Fed's policy meeting later this week. The won rose against the dollar.

After opening higher, the benchmark Kospi stayed in positive terrain, closing at 2,367.85, up 12.19 points, or 0.52 percent.

Trading volume was light at 407.9 million shares worth 6.9 trillion won ($4.96 billion) with decliners outnumbering gainers 654 to 198.

"Tuesday's rebound came as investors took a cue from overnight gains on Wall Street, but they seemed to have kept a wait-and-see stance ahead of the FOMC meeting this week," said analyst Kim Dae-jun of Korea Investment & Securities.

Foreigners and retail investors went into selling mode. Foreigners offloaded a net 78.1 billion won worth of stocks and retail investors a net 224.8 billion won worth of shares. Institutional investors scooped up a net 283.4 billion won.

In Seoul, most shares ended lower, led by a decline in chip stocks.

Samsung Electronics inched down 1.06 percent to 55,800, while SK hynix dipped 2.2 percent to a market close of 88,000 won.

Hyundai Motor dropped 1.49 percent to 198,500 won, and its affiliate Kia fell 0.50 percent to 80,400 won.

Kakao dropped 0.15 percent to 65,300 won, Naver remained flat at 218,000 won.

Battery maker LG Energy Solutions added 1.26 percent to 483,500 won, while LG Chem slid 0.79 percent to close at 630,000 won.

Airlines stocks ended higher after U.S. President Joe Biden said the Covid-19 pandemic is over. Korean Air shares added 3.19 percent to 25,850 won, while Asiana Air advanced 3.55 percent to end at 14,600 won.

The local currency ended at 1,389.5 won against the dollar, down 4.1 won from Monday's close.

The Kosdaq gained 8.44 points, or 1.12 percent, to close at 760.35 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds advanced 3.1 basis points to 3.789 percent, and the yield on the 10-year government bond gained 2.1 basis points to 3.820 percent.

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