Kospi bounces up 0.73% on rebound in tech stocks

Seoul shares ended higher Tuesday on a rebound in technology heavyweights, although investors remained concerned about renewed tensions in the Middle East and uncertainty surrounding the AI sector. The won strengthened against the dollar.

After opening 0.56 percent lower, the benchmark Kospi reversed course to close 49.9 points, or 0.73 percent, higher at 6,856.83.

The index fell to an intraday low of 6,448.86.

The rebound followed a 9 percent plunge in the Kospi the previous session, driven by a massive sell-off in technology stocks.

Overnight, the Dow Jones Industrial Average fell 0.26 percent, while the tech-heavy Nasdaq composite dropped 1.55 percent.

Investors also monitored developments in the Middle East following the latest exchange of attacks between the United States and Iran over the status of the Strait of Hormuz, while awaiting U.S. inflation data due later in the day for fresh clues about the outlook for interest rates, analysts said.

Institutions and foreigners bought a net 3.22 trillion won ($2.15 billion) and 952.7 billion won worth of stocks, respectively. Retail investors sold a net 4.14 trillion won.

Tech stocks led the gains.

Market bellwether Samsung Electronics rose 3.34 percent to 263,000 won, while its chipmaking rival SK hynix climbed 3.69 percent to 1,913,000 won.

Flag carrier Korean Air rose 2.51 percent to 26,500 won, and shipping firm HMM gained 1.07 percent to 19,760 won.

Among decliners, top carmaker Hyundai Motor fell 4.39 percent to 424,500 won, and defense giant Hanwha Aerospace declined 6.84 percent to 872,000 won.

The local currency strengthened by 10.4 won from the previous session to trade at 1,493 won against the dollar at 3:30 p.m. 

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 7.8 basis points to 3.887 percent, and the return on the benchmark five-year government bonds climbed 8.7 basis points to 4.128 percent.

Yonhap