Kospi snaps four-day slide as chip giants draw bargain hunters

Seoul stocks snapped their four-day losing streak to close sharply higher as investors went bargain hunting for major tech shares and semiconductors. The Korean won weakened against the dollar.

After opening slightly lower, the benchmark Kospi closed up 90.71 points, or 1.37 percent, to 6,717.97.

Trade volume was light at 197.7 million shares worth 15.9 trillion won ($11.6 billion). Losers outnumbered winners 576 to 303.

Institutional investors were net buyers, scooping up 1.21 trillion won worth of shares. Retail and foreign investors were net sellers, offloading a combined 2.87 trillion won.

"Investors seemed to have assessed that the recent decline in the Kospi was too much [...] bargain hunting was focused on the two semiconductor giants as the memory uptrend story still remains intact," Lee Kyoung-min, an analyst at Daishin Securities, said.

Investors are now keeping an eye on the policy meeting results from the U.S. Federal Reserve, which will likely carry out a rate-hike decision, the analyst added.

In Seoul, semiconductors strengthened, while other market heavyweights lost ground.

Top-cap Samsung Electronics rose 2.01 percent to 253,500 won, while SK hynix jumped 4.08 percent to 1,759,000 won.

In contrast, industry leader Hyundai Motor shed 1.36 percent to 362,000 won, defense giant Hanwha Aerospace inched down 0.75 percent to 1,055,000 won and bio firm Celltrion slid 0.17 percent to 177,200 won.

The Korean won weakened 9.2 won from the previous stock trading session's close to trade at 1,368.6 won against the dollar at 3:30 p.m. 

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys rose 3.8 basis points to 4.053 percent, and the return on the benchmark five-year government bonds also fell 5.7 basis points to 4.288 percent.

Yonhap