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Kospi up nearly 2 percent amid bargain hunting, Microsoft announcement, U.S. tech gains

Published: 06 Jan. 2025, 16:35 Updated: 06 Jan. 2025, 19:18

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,488.64 points on Jan.6, up 1.91 percent, or 46.72 points, from the previous trading session. [YONHAP]

Shares rose nearly 2 percent Monday as investors picked up chip bargains while welcoming a major investment plan by Microsoft and marked gains of U.S. tech shares.

The benchmark Kospi added 46.72 points, or 1.91 percent, to close at 2,488.64, extending the winning streak to a second session. The Kosdaq rose 12.20 points, or 1.73 percent to close at 717.96,

Trade volume was moderate at 296.92 million shares worth 8.05 trillion won ($5.48 billion), with winners outnumbering losers 628 to 257.

The index opened higher and had extended gains further, as foreigners and institutions purchased a net 376.35 billion won and 64.54 billion won worth of shares, respectively.

However, individuals sold a net 541.9 billion won worth of shares.

"Investors have digested bad news that weighed down the market recently. The index is expected to rebound further as uncertainties have eased," Daishin Securities researcher Lee Kyung-min said.

Investors welcomed the news that Microsoft announced a plan to invest $80 billion in developing data centers this year to advance artificial intelligence models and cloud-based applications.

Eyes are also on the annual tech show CES underway in Las Vegas.

The U.S. shares rose markedly Friday, driven by big-cap tech gains amid signs of the resilient economy and job market. The Dow Jones Industrial Average rose 0.8 percent, and the Nasdaq composite leaped 1.8 percent.

In Seoul, Samsung Electronics soared 2.76 percent to 55,900 won and SK hynix spiked 9.84 percent to 199,800 won.

LG Energy Solution advanced 1.54 percent to 361,500 won and LG Chem climbed 1.18 percent to 256,500 won.

Major bio shares gathered ground. Samsung Biologics rose 0.64 percent to 946,000 won, and Celltrion increased 1.55 percent to 183,700 won.

Financials also finished higher, with KB Financial rising 2.03 percent to 85,500 won and Shinhan Financial growing 1.56 percent to 48,950 won.

Posco Holdings gained 1.16 percent to 262,000 won, and internet platform giant Naver surged 3.99 percent to 208,500 won.

But carmakers ended lower. Hyundai Motor lost 0.7 percent to 211,500 won and Kia shed 0.2 percent to 100,500 won.

The local currency was quoted at 1,469.7 won against the greenback at 3:30 p.m., up 1.3 won from the previous session.

Bond prices, which move inversely to yields, closed lower. Three-year government bond yields rose by 4.1 basis points to 2.526 percent, while the return on the benchmark 10-year U.S. government bonds rose by 3.5 basis points to 4.598 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]