Stocks end two-day losing streak to close higher Thursday

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,380.34 points on Thursday, up 12.02 points, or 0.51 percent, from the previous trading day. [YONHAP]

Stocks broke their two-day losing streak to close higher Thursday as foreigners went into buying mode despite worries over a recession reignited by weak U.S. economic data, analysts said. The local currency rose against the dollar.

The Kospi advanced 12.02 points, or 0.51 percent, to close at 2,380.34. Trading volume was moderate at 364 million shares worth 5.36 trillion won ($4.34 billion) with gainers outnumbering decliners 473 to 362.

"Weak U.S. economic data fueled concerns over a recession, and that is not a good thing for Korea that is highly dependent on exports," Seo Sang-young, an analyst at Mirae Asset Securities, said. "But the extended foreign buying helped the main index eke out gains."

Foreigners bought a net 580 billion won worth of local equities, extending the buying binge to the seventh consecutive session. Thursday's net purchase marked the largest amount in eight trading days.

Institutions and individual investors, on the other hand, sold off a net 260 billion won and a net 315 billion won, respectively.

Domestic-focused stocks, notably mobile carriers, insurance companies and utility providers, were among the gainers.

Telecom company KT jumped 3.3 percent to 36,050 won and Samsung Fire and Marine Insurance soared 2.22 percent to 207,500 won.

State-run Korea Electric Power Corp. also rose 0.74 percent to 20,300 won.

Samsung Electronics jumped 1.82 percent to 61,500 won. Chemical producer LG Chem gained 1.31 percent to 621,000 won.

In contrast, auto and financial stocks finished in negative terrain. Hyundai Motor shed 0.3 percent to 164,000 won and banking firm KB Financial sank 2.22 percent to 57,200 won.

The local currency ended at 1,232.10 won against the dollar, down 5.3 won from Wednesday's close.

The Kosdaq climbed 1.14 points, or 0.16 percent, to close at 712.89 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 15.5 basis points to 3.240 percent, and the yield on the benchmark 10-year government bonds shed 17.6 basis points to 3.372 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]