South Korean stocks closed higher Tuesday, snapping a two-day losing streak, on optimism over corporate earnings amid lingering concerns about the potential economic impact from the widely expected US monetary tightening. The local currency fell against the US dollar.
The Korea Composite Stock Price Index (KOSPI) climbed 0.42 percent, or 11.18 points, to close at 2,668.31. Trading volume was heavy at 873 million shares worth 10.64 trillion won ($8.49 billion) with gainers outstripping decliners 550 to 316.
The KOSPI tracked the overnight rally on Wall Street, which was led by big tech firms, along with the news that Tesla CEO Elon Musk will buy Twitter for $44 billion.
"The rebound in US stocks is a positive for the South Korean market, as it reflects high expectations for corporate earnings and investor appetite for bargain hunting after the recent fall," Seo Sang-young, an analyst at Mirae Asset Securities Co.
"Concerns over an economic slowdown in light of the Fed's monetary tightening issue and China's lockdown have not eased, but such optimism over the earnings season is expected to help boost the stock market," Seo said.
Foreigners offloaded a net 249.9 billion won worth of stocks, and retail investors also sold off a net 64.3 billion won. Institutional investors scooped up a net 276.6 billion won.
Market heavyweights led the overall market advance, with biopharmaceutical giant Celltrion surging 8.04 percent to 168,000 won and vaccine maker SK Bioscience adding 1.1 percent to 137,500 won.
The transition team of President-elect Yoon Suk-yeol announced six areas, including energy and bio, that Yoon's government will bolster support for to nurture as future growth drivers.
Top automaker Hyundai Motor advanced 2.75 percent to 187,000 won, and its smaller affiliate Kia soared 4.9 percent to 83,500 won on the back of robust quarterly earnings reported the previous day.
SK hynix, major chipmaker, rose 2.78 percent to 111,000 won.
Top cap Samsung Electronics, on the other hand, shed 0.39 percent to 66,100 won.
Battery maker LG Energy Solution, the second most valuable company on the KOSPI, dipped 2.19 percent to 423,500 won ahead of the end of the 90-day lockup period for allotted shares from its initial public offering in January.
The local currency ended at 1,250.80 won against the US dollar, down 0.9 won from Monday's close. (Yonhap)
