Stocks end higher Wednesday as concerns of global banking crisis ease

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Stocks end higher Wednesday as concerns of global banking crisis ease

Published: 22 Mar. 2023, 17:16 Updated: 23 Mar. 2023, 17:30

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,416.96 points on Tuesday, up 1.2 percent, or 28.61 points, from the previous trading day. [NEWS1]

Stocks ended higher for a second session Wednesday, as concerns about a global banking crisis have eased thanks to the U.S. government's pledge to take further actions to stem turmoil, analysts said. The won rose against the dollar.

The benchmark Kospi added 28.61 points, or 1.2 percent, to close at 2,416.96. Trading volume was moderate at 492.72 million shares worth 7.73 trillion won ($5.91 billion), with decliners outpacing gainers 530 to 336.

The index opened higher, tracking overnight gains on Wall Street, and extended gains as worries about a contagion risk sparked by the collapse of American lenders earlier this month eased.

U.S. Treasury Secretary Janet Yellen said Tuesday the government is willing to provide further guarantees of bank deposits if the banking crisis worsens, according to foreign media reports.

Investors now await the results of the Federal Reserve's two-day rate-setting meeting set to end Wednesday, where it is largely expected to raise the interest rates by 25 basis points.

"Investor sentiment has been improved thanks to Yellen's comments and the upturn of financial shares on Wall Street. The Fed's possible slowdown of monetary tightening could also be a positive factor for the stock market," Seo Sang-young, an analyst at Mirae Asset Securities, said.

In Seoul, tech, batteries and financial shares led the upturn of the index.

Samsung Electronics rose 1.33 percent to 61,100 won, and chip giant SK hynix spiked 3.95 percent to 86,900 won.

Battery maker LG Energy Solution surged 4.95 percent to 573,000 won, and Samsung SDI jumped 2.09 percent to 732,000 won.

Naver soared 3.24 percent to 207,000 won, and Kakao added 2.96 percent to 62,700 won.

KB Financial climbed 1.44 percent to 49,150 won and Shinhan Financial gained 1.43 percent to 35,450 won.

The local currency ended at 1,307.7 won against the dollar, down 3.5 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 0.4 basis points to 3.290 percent, and the yield on the benchmark 10-year government bonds climbed 12.4 basis points to 3.608 percent.

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