Kospi continues recovery with 1.8% on gains in tech shares

Finance

Kospi continues recovery with 1.8% on gains in tech shares

Published: 07 Aug. 2024, 17:40 Updated: 07 Aug. 2024, 18:03

A screen in Hana Bank's trading room in central Seoul shows Kospi closing at 2,568.41 points on Wednesday, up 1.8 percent, or 46.26 points, from the previous trading session. The Kosdaq rose 2.14 percent, or 15.67 points, to 748.54. [NEWS1]

Stocks ended higher for a second straight session Wednesday, helped by tech gains, as investor sentiment toward risky assets improved following a global stock rout. The won fell against the dollar.

The Kospi rose 46.26 points, or 1.8 percent, to close at 2,568.41.

Trade volume was moderate at 469.69 million shares worth 12.9 trillion won ($9.4 billion), with winners exceeding losers 727 to 176.

The rebound comes in line with gains in U.S. stocks.

Overnight, the Dow Jones Industrial Average rose 0.76 percent to 38,997.66, and the tech-heavy Nasdaq Composite climbed 1.03 percent to 16,366.85.

The Kospi ended 3.3 percent higher on Tuesday after plunging nearly 9 percent a day earlier due to a massive sell-off amid concerns over a recession in the United States.

Individuals bought a net 296.03 billion won worth of stocks, offsetting institutions and foreigners' stock selling valued at 326.68 billion won.

In Seoul, tech stocks were lead gainers.

Samsung Electronics jumped 3 percent to 74,700 won, and chipmaker SK hynix climbed 3.4 percent to 169,300 won.

Carmaker Hyundai Motor gained 0.4 percent to 236,000 won, and the state-run Korea Electric Power Corporation was up 2.6 percent to 19,490 won.

Among decliners, battery maker LG Energy Solution fell 3.7 percent to 324,500 won, cosmetics firm Amorepacific plunged 25 percent to 124,500 won, and leading refiner SK Innovation shed 1.8 percent to 98,000 won.

Shares of the cosmetics giant plummeted after it reported a 30 percent on-year slump in operating profit in the second quarter due to weak sales in China.

The local currency was trading at 1,376.8 won against the dollar as of 3:30 p.m., up 4.6 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 0.5 basis points to 2.928 percent, and the return on the benchmark U.S. 10-year bonds rose 9.9 basis points to 3.894 percent.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]