Korean stocks close up over 1 percent on gains in tech shares

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2.293.61 points on Monday, up 25.21 points, or 1.11 percent, from the previous trading day. [YONHAP]

Stocks closed over 1 percent higher Monday on the back of gains in tech shares amid hopes that the U.S. Federal Reserve may decelerate its pace of rate hikes. The local currency fell against the dollar.

The Kospi added 25.21 points, or 1.11 percent, to close at 2,293.61.

Trading volume was moderate at 395.3 billion shares worth 8.6 trillion won ($6.03 billion) with winners outnumbering losers 526 to 320.

After opening higher, the Kospi extended gains as investors snatched up semiconductors and other tech stocks.

Foreigners scooped up a net 230.3 billion won of shares, while institutional and retail investors dumped a combined 233.29 billion won worth of equities.

"It's hard to say that Monday's gains are meaningful, as gains were limited to IT and semiconductor shares," said Lee Kyoung-min, an analyst at Daeshin Securities.

Investors are keeping an eye on the Fed's policy meeting with hopes it would slow down the pace of rate hikes this week.

In Seoul, most large cap shares ended higher, buoyed by an advance in IT, chips and electronics.

Samsung Electronics surged 3.66 percent to 59,400 won, while rival chip maker SK hynix slid 0.84 percent to 82,700 won.

LG Chem rose 1.79 percent to 626,000 won while Hyundai Motor inched up 0.30 percent to 164,500 won.

IT shares gained ground. Portal site operator Naver climbed 5.94 percent to 169,500 won, and messenger app operator Kakao added 4 percent to a closing price of 50,700 won.

Battery shares closed lower. Battery maker LG Energy Solutions dipped 0.75 percent to 528,000 won, while battery materials maker Posco Chemical lost 0.25 percent to 199,500 won.

The local currency ended at 1,424.3 won against the dollar, up 2.8 won from Friday's close.

The Kosdaq gained 7.70 points, or 1.12 percent, to close at 695.33 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds increased 8.3 basis points to 4.189 percent, and the yield on 10-year government bonds gained 9.2 basis points to 4.255 percent.

BY LIM JEONG-WON, YONHAP [lim.jeongwon@joongang.co.kr]