South Korean stocks finished higher Thursday, breaking a three-day losing streak, as investors digested the US Federal Reserve chairman's hawkish congressional testimony. The local currency dropped against the US dollar.
The benchmark Korea Composite Stock Price Index gained 11.07 points, or 0.43 percent, to close at 2,593.7.
Trade volume was moderate at 601.54 million shares worth 8.76 trillion won ($6.7 billion), with decliners outnumbering gainers 492 to 358.
Foreign and retail investors offloaded a net 239.1 billion won worth of local shares, while institutions bought a net 237.1 billion won.
"Institutions' buying pushed up the Kospi," said Lee Kyoung-min, an analyst from Daishin Securities, "as the recent bear market spurred bargain hunting."
Stocks got off to a weak start, tracking overnight Wall Street losses after Fed Chair Jerome Powell reaffirmed the central bank remained focused on wrestling down inflation back to its 2 percent target and that there could be two more quarter-percentage point hikes this year.
"Nearly all FOMC participants expect it will be appropriate to raise interest rates somewhat further by the end of the year," he said.
In Seoul, large-cap issues closed mixed.
Market behemoth Samsung Electronics added 1.13 percent to close at 71,300 won, while No. 2 chipmaker SK hynix shed 0.96 percent to 114,000 won.
Top battery maker LG Energy Solution gained 1.97 percent to 569,000 won, and Samsung SDI closed flat.
Steel giant Posco Holdings rose 3.53 percent to 396,000 won, and Posco Future M, the steelmaker's chemical components-making unit, also climbed 0.8 percent to 377,000 won. LG Electronics added 0.32 percent to 125,400 won.
Leading chemicals producer LG Chem lost 0.28 percent to 721,000 won. Hyundai Motor went down 0.98 percent to 202,000 won, and Kia also lost 0.6 percent to 83,400 won.
The local currency ended at 1,294.9 won against the US dollar, down 2.9 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 2.1 basis points to 3.592 percent, and the return on the benchmark 10-year government bonds inched up 2.6 basis points to 3.647 percent. (Yonhap)
