Seoul: Seoul stocks spiked by more than 4 percent on a tech rally following Alphabet's second-quarter earnings release. The Korean won rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) closed up 299.19 points, or 4.4 percent, to 7,096.89.
According to Yonhap News Agency, trade volume was moderate at 392.3 million shares worth 26.7 trillion won (US$18.2 billion). Winners outnumbered losers 829 to 73. "The KOSPI recovered to land at the 7,000-point level, helped by foreign investors who snapped up semiconductors," said Kim Joo-yun, an analyst at Mirae Asset Securities.
Foreign investors were net buyers for the fourth consecutive day, purchasing 2.1 trillion won. Institutional investors also bought a net 97.5 billion won, while retail investors were net sellers, offloading 2.2 trillion won. The buying spree from offshore investors was driven by anticipation that memory chip demand will continue, following better-than-expected earnings results from Alphabet, Google's parent company.
Alphabet reported an 82 percent on-year increase in cloud revenue and announced plans to expand its capital expenditures on artificial intelligence (AI). Meanwhile, ongoing tensions in the Middle East pushed Brent crude, the international oil benchmark, up to US$96 per barrel, adding downward pressure to the local stock market.
Market top-cap Samsung Electronics rose 3.65 percent to 270,000 won, while its rival SK hynix jumped 4.85 percent to 1,919,000 won. Defense shares also advanced, with Hanwha Aerospace climbing 7.52 percent to 958,000 won and LIG DefenseandAerospace soaring 10.34 percent to 736,000 won.
Among the decliners were financial shares, with Shinhan Financial inching down 0.67 percent to 103,800 won, and Hana Financial dipping 0.84 percent to 130,500 won. The Korean won was quoted at 1,466.8 won against the U.S. dollar as of 3:30 p.m., up 13.3 won from the previous session.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys rose 0.4 basis point to 3.917 percent, while the return on the benchmark five-year government bonds dipped 0.8 basis point to 4.164 percent.