Shares close higher following U.S. presidential debate debacle

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,804.31 points on Monday, up 0.23 percent, or 6.49 points, from the previous trading session. [NEWS1]

Shares finished slightly higher Monday as investors took a breather ahead of the release of the U.S. Fed minutes and the second-quarter earnings guidance of Samsung Electronics. The won fell in value against the dollar on the first day of extended trading hours on the won-dollar exchange.

The Kospi rose 6.49 points, or 0.23 percent, to 2,804.31.

Trade volume was slim at 452.5 million shares worth 9.8 trillion won ($7.1 billion), with losers beating winners 494 to 379. Institutions purchased a net 53.1 billion won worth of local shares offset by net sales of 64.7 billion won by foreign investors.

Last week, U.S. stocks closed mixed after the U.S. Personal Consumption Expenditures Price Index for May met market expectations, raising hopes for a rate cut by the U.S. Federal Reserve.

But U.S. President Joe Biden's poor showing at his first debate fueled political uncertainties in the run-up to the 2024 presidential election.

In Seoul, experts said investors continue awaiting the minutes of the Federal Reserve's June meeting scheduled for Wednesday and Samsung Electronics' earnings guidance slated for release Friday.

Shares finished mixed across the board.

Samsung Electronics advanced 0.37 percent to 81,800 won while SK hynix dropped 0.42 percent to 235,500 won.

Shares of SK Group went south after the release of the conglomerate's reform plan over the weekend. Holding company SK Corporation fell 0.95 percent to 156,800 won and SK Innovation slid 0.69 percent to 115,300 won.

Auto shares finished weak. Hyundai Motor sank 3.05 percent to 286,000 won, and Hyundai Mobis declined 1.59 percent to 247,500 won.

Pharmaceuticals finished in positive territory. Samsung Biologics jumped 4.4 percent to 759,000 won, and Celltrion rose 5.62 percent to 184,100 won.

The local currency was trading at 1,379.3 won against the greenback as of 3:30 p.m., up 2.6 won from the previous session's close.

Starting Monday, Korea's foreign exchange market for won-dollar transactions operates until 2 a.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 2.8 basis points to 3.209 percent, and the return on the benchmark U.S. 10-year government bonds gained 11.1 basis points to 4.398 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]