Stocks rise more than 1 percent led by tech and chip shares

Home > Business > Finance

Stocks rise more than 1 percent led by tech and chip shares

Published: 06 Mar. 2023, 18:11 Updated: 06 Mar. 2023, 18:46

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,462.62 points on Monday, up 30.55 points, or 1.26 percent, from the previous trading day. [YONHAP]

Stocks closed over 1 percent higher Monday to extend their winning streak to a fourth day on advances in chips, batteries and tech, as the U.S. Federal Reserve may slow down its monetary tightening. The local currency rose against the dollar for the fourth session.

The benchmark Kospi rose 30.55 points, or 1.26 percent, to a close at 2,462.62 points.

Trading volume was moderate at 411 million shares worth 9.63 trillion won ($7.4 billion), with losers outnumbering gainers 450 to 435.

The Kospi remained bearish during early trading and sharply advanced around noon as institutional and foreign investors snapped up shares in chips, batteries and tech.

Foreign and institutional investors snapped up a combined 781.7 billion won of shares, while retail investors sold off 787.5 billion won.

"The weakening dollar and expectations over the Fed's rate hike slowdown boosted market sentiment," analyst Seo Sang-yong from Mirae Asset Securities said.

Also, Korea said it has decided to suspend a complaint with the World Trade Organization on Japan's export controls of key industry materials to Seoul as they prepare to start official talks on the lifting of the restrictive measures.

Shares closed higher across the board.

Samsung Electronics advanced 1.65 percent to 61,500 won, and SK hynix added 2.75 percent to 89,700 won.

Battery maker Samsung SDI jumped 6.84 percent on news that it is set to sign a deal with General Motors on a battery manufacturing plant in the United States.

K-pop agency Hybe gained 2.35 percent to extend its winning streak to a fourth consecutive session to close at 191,800 won.

Among decliners, steelmaker Posco Holdings was down 0.75 percent to 329,500 won, LG Household & Health Care inched down 0.74 percent to 671,000 won and shipper HMM declined 1.78 percent to 22,050 won.

The local currency closed at 1,296.9 won against the dollar, down 4.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds shed 1.0 basis points to 3.782 percent, and the yield on the benchmark 10-year government bonds fell 10.2 basis points to 3.958 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]