Kospi closes up 1.15% on receding fears of U.S. recession

Finance

Kospi closes up 1.15% on receding fears of U.S. recession

Published: 12 Aug. 2024, 17:29 Updated: 12 Aug. 2024, 19:16

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,618.30 points on Monday, up 1.15 percent, or 29.87 points, from the previous trading session. The Kosdaq rose 1.08 percent, or 8.29 points, to 772.72. [NEWS1]

Shares closed more than 1 percent higher Monday, recovering from last week's rout as concerns over a U.S. economic recession eased. The local currency lost ground against the dollar.

The Kospi climbed 29.87 points, or 1.15 percent, to 2,618.30, rising for the second consecutive day.

Trade volume was slim at 286.2 million shares worth 7.4 trillion won ($5.4 billion), with gainers far outnumbering losers 674 to 202.

Foreigners and institutions led the increase, purchasing local shares worth 76 billion won and 149 billion won, respectively, while retail investors sold 206.4 billion won.

Wall Street on Friday finished higher as recession worries diminished thanks to better-than-expected unemployment data.

Investors' eyes are now on U.S. consumer price, producer price and retail sales data due out later this week.

"The Kospi has made an upturn as recession fears were relieved to some degree, and investors are now focusing on the fundamentals, such as corporate earnings and exports," Roh Dong-gil, an analyst at Shinhan Securities, said.

"In particular, AI chip shares, including SK hynix, were bullish as concerns surrounding an AI bubble partially dwindled," he added.

Samsung Electronics increased 1.07 percent to 75,500 won, and SK hynix shot up 3.21 percent to 177,000 won.

Battery maker LG Energy Solution jumped 2.02 percent to 328,500 won, and Samsung SDI soared 3.06 percent to 319,500 won.

Biopharmaceutical firm Celltrion also surged more than 2 percent to 200,000 won.

But internet portal operator Naver shed 2.08 percent to fall to 160,300 won, and defense and shipbuilding company HD Hyundai Heavy Industries lost 1.65 percent to 208,500 won.

The local currency had been trading at 1,372 won against the greenback as of 3:30 p.m., up 7.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 0.5 basis points to 2.946 percent, and the return on the benchmark U.S. 10-year bonds fell 5.1 basis points to 3.942 percent.

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