Seoul: South Korean stocks rose for the second consecutive session Tuesday on gains in tech shares despite escalating tensions in the Middle East following a resumption of airstrike exchanges between the United States and Iran. The local currency lost against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed at 6,835.80, up 15.78 points, or 0.23 percent. The index initially opened 0.52 percent lower, influenced by overnight losses on Wall Street. This downturn was attributed to renewed military clashes between the U.S. and Iran, which have heightened uncertainty regarding global oil prices and inflation concerns in the U.S., the world's largest economy.
Federal Reserve Chair Kevin Warsh's hawkish remarks during the Jackson Hole Symposium further fueled apprehensions about a potential rate hike in the upcoming rate-setting meeting later this month. The Dow Jones Industrial Average fell 0.7 percent, the S and P 500 lost 0.33 percent, and the Nasdaq Composite declined 0.12 percent.
However, the KOSPI managed to erase earlier losses in the afternoon session, thanks to gains in tech shares. This recovery followed government data showing that South Korea's August exports remained robust, driven by strong demand for chips. Trade volume was light, with 263.7 million shares worth 17.5 trillion won (US$12.8 billion) changing hands. Winners narrowly outnumbered losers, with 444 stocks advancing compared to 421 decliners.
Foreign, institutional, and retail investors were all net sellers, offloading stocks worth 491.9 billion won, 634 billion won, and 539.8 billion won, respectively. This net selling activity limited the main index's gains. "External uncertainty dampened investor sentiment, but strong buying from big companies backed up the index," noted Lee Kyung-min, an analyst at Daishin Securities, referencing the large-scale buyback programs recently announced by Samsung Electronics and SK hynix.
Market leader Samsung Electronics saw a 0.38 percent increase to 261,000 won, while its competitor SK hynix advanced 1.14 percent to 1.69 million won. Oil refineries benefited from rising crude oil prices, with SK Innovation surging 7.81 percent to 135,300 won and S-Oil gaining 1.07 percent to 151,700 won.
Leading shipbuilder HD Hyundai Heavy Industries experienced a 0.78 percent rise to 453,000 won, and major retailer Lotte Shopping surged 6.48 percent to 113,300 won. Conversely, defense giant Hanwha Aerospace fell 3.99 percent to 1.06 million won, and top pharmaceutical firm Celltrion dropped 0.48 percent to 188,000 won.
The Korean won was quoted at 1,370.4 won against the U.S. dollar, down 1.8 won from the previous stock trading session.