Samsung Electronics leads bullish market ahead of Q2 earnings

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,824.94 points on Thursday, up 1.11 percent, or 30.93 points, from the previous trading session. [NEWS1]

Shares finished more than 1 percent higher on Thursday, a high for 2024, with investor sentiment boosted by revived hopes for a rate cut in the United States and Samsung Electronics' upcoming earnings guidance. The won rose in value against the dollar.

The Kospi rose 30.93 points, or 1.11 percent, to 2,824.94, marking the highest closing price since Jan. 21, 2022, when it finished at 2,834.29.

Trade volume was slim at 386.4 million shares worth 12.8 trillion won ($9.26 billion), with gainers beating decliners 484 to 387.

Foreigners and institutions purchased a net 321.6 billion won and 1.1 trillion won, respectively, while individuals dumped a net 1.14 trillion won.

Overnight, the U.S. stock market enjoyed a rally on hopes for the U.S. Federal Reserve's dovish move following the release softening labor data and the strong performance of tech shares including AI chip giant Nvidia.

In Seoul, Samsung Electronics led the bullish market, rising 3.42 percent to 84,600 won. The memory chipmaker will release its second-quarter earnings guidance on Friday, which is expected to record an operating profit for the second quarter in a row.

SK hynix, however, fell 2.54 percent to 230,000 won.

Battery shares were strong. LG Energy Solution rose 0.28 percent to 359,000 won and Samsung SDI climbed 2.18 percent to 374,500 won.

Bank shares were among the biggest winners after the Yoon Suk Yeol administration announced plans to reduce corporate and inheritance taxes as part of its value-up program. KB Financial Group rose 1.78 percent to 85,900 won, Hana Financial Group soared 1.86 percent to 65,800 won and Shinhan Financial Group climbed 2.74 percent to 52,500 won.

Entertainment companies finished in mixed territory. CJ ENM tumbled 11.86 percent to 69,100 won, while HYBE jumped 2.03 percent to 201,000 won.

The local currency was trading at 1,380.4 won against the dollar as of 3:30 p.m., down 10.2 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government fell 3.1 basis points to 3.127 percent, and the return on the benchmark U.S. 10-year government bonds dropped 7.3 basis points to 4.360 percent.

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