Stocks close up as tech blue chips rise amid hopes of eased monetary tightening

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,399.04 points on Tuesday, up 27.25 points, or 1.15 percent, from the previous trading day. [YONHAP]

Stocks closed up over 1 percent Tuesday as Samsung Electronics and tech blue chips rose amid hopes for eased monetary tightening in the United States. The local currency jumped against the dollar.

The Kospi advanced 27.25 points, or 1.15 percent, to 2,399.04. It marked the third straight session of a rise.

Trading volume was moderate at 492.8 million shares worth 8.5 trillion won ($6.13 billion) with gainers outstripping decliners 670 to 202.

Foreigners and institutions were net buyers of local equities, scooping up a net 274 billion won and 441 billion won, respectively. Individual investors sold off a net 724 billion won.

"The anticipation over the Fed's possible easing of monetary tightening, along with the dollar's slide, is creating a mood for investors to opt for risky assets," said Han Ji-young, an analyst at Kiwoom Securities.

"Although the overall stock market environment has turned more optimistic, the market could see another period of volatility after the U.S. midterm vote and the result of the U.S. consumer prices index," Han said.

U.S. stocks ended higher Monday, on the eve of the midterm elections, with the prospect of the Republicans likely to control at least one chamber of Congress helping to erase some market uncertainties for the time being.

In Seoul, tech blue chips and IT service companies drove up the Kospi. Samsung Electronics gained 2.7 percent to 61,800 won, and SK hynix climbed 1.4 percent to 87,700 won.

Naver soared 5 percent to 177,500 won, and Kakao jumped 3.3 percent to 51,500 won.

In contrast, chemical companies closed down. LG Chem fell 1.9 percent to 691,000 won, and Posco Chemical slid 1.4 percent to 211,500 won.

The local currency ended at 1,384.90 won against the dollar, down 16.3 won from Monday's close.

The Kosdaq gained 12.58 points, or 1.83 percent, to close at 713.33 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds decreased 2.9 basis points to 4.162 percent, and the yield on 10-year government bonds dipped 2.6 basis points to 4.242 percent.

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