SEOUL, March 13 (Yonhap) -- Seoul stocks closed higher to end their three-day losing streak Monday as investors pay keen attention to the fallout from the Silicon Valley Bank (SVB)'s collapse amid hope for a slower-than-expected rate hike by the Federal Reserve. The Korean won sharply rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 16.01 points, or 0.67 percent, to close at 2,410.6 points.
Trading volume was moderate at about 371 million shares worth some 7.4 trillion won (US$5.7 billion), with gainers outnumbering losers 652 to 255.
Institutions bought a net 308 billion won and foreigners purchased 18 billion won, while retail investors offloaded 327 billion won.
The market got off to a lackluster start after the Dow Jones Industrial Average closed down 1.07 percent Friday and the tech-laden Nasdaq Composite declined 1.76 percent as the SVB failure roiled the market.
Last week, the U.S.' SVB collapsed in the wake of the Fed's aggressive rate hikes, affecting other lenders and the financial market.
The U.S.' financial authorities and the Fed are shoring up programs to protect the bank customers and prevent damage to the overall financial system.
The South Korean regulator and the Bank of Korea said the SVB fiasco is unlikely to cause major harm to the local market while vowing to closely monitor the case.
"With fast response from the (U.S.) government and the Fed, the SVB fallout is not likely to spread in the short-term," Daeshin Securities analyst Lee Kyung-min said. "But the case may levy psychological pressure on promising firms with heavy debt or a weak financial system," he added.
Most large caps closed higher in Seoul.
Top cap Samsung Electronics grew 0.84 percent to 60,000, and chipmaker SK hynix rose 1.2 percent to 84,300 won.
Leading battery maker LG Energy Solutions gained 2.18 percent to 563,000 won, and chemical giant LG Chem swelled 1.56 percent to 718,000 won.
Top carmaker Hyundai Motor added 0.57 percent to 176,000 won, and internet portal operator Naver advanced 1.35 percent to 202,500 won.
The local currency closed at 1,301.8 won against the greenback, up 22.4 won from the previous session's close.
Source: Yonhap News Agency