Stocks rise for third day on big-cap tech gains

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Stocks rise for third day on big-cap tech gains

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,424.48 points on Thursday, up 0.31 percent, or 7.52 points, from the previous trading day. [YONHAP]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,424.48 points on Thursday, up 0.31 percent, or 7.52 points, from the previous trading day. [YONHAP]

 
Stocks rose for a third day Thursday on big-cap tech gains after the U.S. Federal Reserve raised the interest rates by a widely expected margin amid lingering concerns over global banking turmoil, analysts said. The won rose sharply against the dollar.
 
The benchmark Kospi rose 7.52 points, or 0.31 percent, to close at 2,424.48. Trading volume was moderate at 558.79 million shares worth 10.18 trillion won ($7.95 billion), with decliners outpacing gainers 667 to 223.
 
The index opened markedly lower, tracking overnight losses on Wall Street, and bobbed in and out of positive terrain before ending higher.
 
On Wednesday, the Fed raised its key rate by 25 basis points to a range of 4.75 percent to 5 percent, the ninth rate hike in a row.
 
"The Fed's rate decision met market expectations. But volatility could grow bigger at least in the short run due to uncertainties over possible additional bank system failures in the world and policy discord over the funding for bank deposit insurance in the United States," Kiwoom Securities analyst Han Ji-young said.
 
Investors remained wary about the impact of high borrowing costs on the financial system as Chair Jerome Powell dismissed any rate cuts this year to curb inflation, and U.S. Treasury Secretary Janet Yellen said her government is not considering "blanket insurance" for all U.S. bank deposits.
 
In Seoul, big-cap tech shares gathered ground.
 
Samsung Electronics surged 1.96 percent to 62,300 won, and SK hynix spiked 1.84 percent to 88,500 won.
 
LG Energy Solution added 0.35 percent to 575,000 won, and Samsung SDI jumped 1.91 percent to 746,000 won.
 
Hyundai Motor inched up 0.11 percent to 180,500 won, while Kia fell 0.63 percent to 78,400 won.
 
Naver sank 1.45 percent to 204,000 won, and Kakao dived 1.75 percent to 61,600 won.
 
The local currency ended at 1,278.3 won against the dollar, down 29.4 won from the previous session's close, the highest since Feb. 14.
 
Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 8.8 basis points to 3.202 percent, and the yield on the benchmark 10-year government bonds shed 16.5 basis points to 3.443 percent.
 

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