Stocks continue winning streak amid U.S. debt ceiling woes

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Stocks continue winning streak amid U.S. debt ceiling woes

Published: 23 May. 2023, 16:46 Updated: 23 May. 2023, 17:41

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,567.55 points on Tuesday, up 0.41 percent, or 10.47 points, from the previous trading day. [YONHAP]

Stocks ended higher Tuesday to extend their winning streak to a seventh session, led by big gains in chemical and steel shares. Investors focused on talks on the United States' debt ceiling to avoid a federal default. The won rose against the dollar.

The Kospi added 10.47 points, or 0.41 percent, to close at 2,567.55. Trading volume was a bit slim at 568.87 million shares worth 7.32 trillion won ($5.57 billion), with losers outpacing gainers 429 to 425.

Institutions bought a net 401.6 billion won worth of shares, while retail and foreign investors sold a net 341.16 billion won and 52.9 billion won worth of shares, respectively.

Investors remain cautious about the U.S. debt ceiling issue, as U.S. President Joe Biden and House Speaker Kevin McCarthy said late Monday that they were unable to reach an agreement.

Eyes are also on the Federal Reserve's next step on interest rates, as St. Louis Fed President James Bullard said another 50 basis-point hike might be required.

"Uncertainties remain high in the market over the U.S. debt issue and the Federal Reserve's monetary path in the coming months, though investors also look to a recovery in key industry sectors. Some volatility is likely for some time," Kiwoom Securities analyst Han Ji-young said.

In Seoul, battery and steel shares led the index's upturn.

LG Energy Solution surged 2.5 percent to 574,000 won, and LG Chem rose 2.71 percent to 719,000 won. Samsung SDI also jumped 1.43 percent to 710,000 won.

Posco Holdings climbed 2.17 percent to 377,000 won, and Posco Future M spiked 3.09 percent to 333,500 won.

Samsung Electronics shed 0.15 percent to 68,400 won, and SK hynix lost 0.31 percent to 97,900 won.

Hyundai Motor remained unchanged at 207,500 won, and Kia inched down 0.11 percent to 88,700 won.

The local currency ended at 1,312.7 won against the dollar, down 5.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 4.8 basis points to 3.369 percent, and the yield on the benchmark 10-year government bonds added 3.2 basis points to 3.713 percent.

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