Kospi climbs almost 2 percent as investors go bargain hunting

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,634.70 points on Thursday, up 1.95 percent, or 50.52 points, from the previous trading session. [YONHAP]

Stocks soared almost 2 percent Thursday as investors bought bargains after four consecutive sessions of decline amid ongoing geopolitical risks in the Middle East and speculation about delays in U.S. interest rate cuts. The won rebounded sharply against the dollar.

The Kospi gained 50.52 points, or 1.95 percent, to close at 2,634.7.

Trade volume was moderate at 466 million shares worth 10.2 trillion won ($7.47 billion), with gainers far outpacing losers at 767 to 125.

Foreigners bought a net 580.3 billion won, while individuals dumped a net 657.7 billion won. Institutions bought a net 68.9 billion won.

Driven by a consensus that the recent decline was excessive, despite risks such as the Israel-Iran conflict and concerns over potential delays in Fed rate cuts, investors opted to pick undervalued stocks.

"There are ongoing concerns that the market may lose ground due to fears of high inflation reemerging and a delayed recovery in the semiconductor sector," said Han Ji-young, an analyst from Kiwoom Securities.

Samsung Electronics moved up 0.89 percent to 79,600 won and SK hynix added 2.01 percent to 182,300 won.

Battery makers were also winners, with LG Energy Solution rising 3.43 percent to 377,000 won and Samsung SDI gaining 5.05 percent to 405,500 won.

Pharmaceutical firms closed bullish as well, with Samsung Biologics rising 1.8 percent to 790,000 won and Celltrion increasing 3.57 percent to 177,100 won.

Naver climbed 0.61 percent to 180,700 won, and Kakao gained 4.69 percent to 49,100 won.

Hanwha Ocean jumped 14.83 percent to 33,300 won, and HYBE climbed 4.34 percent to 228,500 won.

Auto shares fell into negative territory, with Hyundai Motor down 1.07 percent to 231,000 won and Kia down 0.8 percent to 112,200 won.

The local currency ended at 1,372.9 won against the greenback, down 13.9 won from the previous session's close.

The Kosdaq gained 22.62 points, or 2.72 percent, to close at 855.65.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 6.3 basis points to 3.420 percent, and the return on benchmark U.S. 10-year government bonds fell 8.0 basis points to 4.589 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]