South Korean stocks rose more than 3 percent Tuesday, rebounding from the previous day’s worst market sell-off, sparked by fears over a U.S. recession and the sluggish performance of big tech firms. The local currency slightly fell against the U.S. greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 80.6 points, or 3.3 percent, to close at 2,522.15.
It marked a turnaround from a whopping 8.77 percent crash Monday as investor sentiment was undermined by fears that the U.S. economy is losing steam and recent disappointing forecasts from the big U.S. technology companies.
Trade volume was heavy at 530.9 million shares worth 15.2 trillion won (US$11 billion), with winners beating losers 851 to 73.
Individual investors led the upturn, scooping up a net 451.8 billion won, while foreigners dumped a net 193.1 billion won and institutions sold a net 320.9 billion won.
Earlier in the day, data showed that the U.S. services sector activity rebounded from a four-year low in July, helping relie
ve fears of a recession in the world’s largest economy.
“The KOSPI, which suffered its worst daily loss of 234 points the previous session, saw an inflow of investment on eased recession woes,” said Lee Jae-won, an analyst at Shinhan Securities.
Most shares gained ground across the board.
Samsung Electronics, the world’s largest memory chipmaker, added 1.54 percent to 72,500 won, and SK hynix rose 4.87 percent to 163,700 won.
Top carmaker Hyundai Motor jumped 4.91 percent to 235,000 won, and its sister Kia went up 6.65 percent to 102,700 won.
Shipbuilders were among the biggest winners as HD Korea Shipbuilding and Offshore Engineering surged 10.13 percent to 190,300 won, and Hanwha Ocean jumped 8.72 percent to 29,300 won.
Leading banking group KB Financial Group rose 3.52 percent to 79,500 won, and major game publisher NCSOFT vaulted 7.04 percent to 171,700 won.
The local currency was trading at 1,375.6 won against the dollar as of 3:30 p.m., down 0.8 won from the previous session.
Bond prices, whic
h move inversely to yields, closed sharply lower. The yield on three-year Treasurys added 12.9 basis points to 2.935 percent, while the return on the benchmark five-year government bonds advanced 13.6 basis points to 2.953 percent.
Source: Yonhap News Agency