South Korean stocks climbed almost 1.5 percent on Wednesday, as investors hunted bargains in semiconductors. The Korean won dropped to an eight-month low against the U.S. dollar. The KOSPI recovered to the 4,000 level after sliding to a nine-day low in the previous session.
South Korean stocks climbed by almost 1.5 percent on Wednesday, as investors went bargain hunting for semiconductors. The benchmark Korea Composite Stock Price Index (KOSPI) rose 57.28 points, or 1.43 percent, to 4,056.41. The index recovered to the 4,000 level after sliding to a nine-day low the previous session.
Trade volume was moderate at 354.2 million shares worth 12.7 trillion won ($8.6 billion). Winners outnumbered losers 531 to 343.
"The KOSPI's rise was led by Samsung Electronics and SK hynix. Without their advances, the KOSPI would have remained weak," said Lee Kyoung-min, an analyst at Daishin Securities. He warned that short-term volatility may increase, citing persisting foreign exchange risks and continued sell-off from foreign investors.
Foreigners sold off a net 28.9 billion won. Institutional investors purchased a net 335.7 billion won, while retail investors offloaded a net 337.7 billion won.
Large-cap shares ended mixed. Samsung Electronics rose 4.96 percent to 107,900 won, and SK hynix moved up 3.96 percent to 551,000 won. LG Energy Solution slipped 0.6 percent to 415,500 won, Hyundai Motor closed unchanged at 286,000 won, and Hanwha Aerospace inched down 0.57 percent to 870,000 won.
The local currency was quoted at 1,479.8 won against the dollar at 3:30 p.m., down 2.8 won from the previous close, marking the lowest since April 9 at 1,484.1 won. Foreign exchange authorities activated a currency swap with the pension operator after extending the $65 billion swap deal by one year.
Bond prices ended higher. The yield on three-year Treasurys fell 0.3 basis point to 2.996 percent, and the five-year government bonds shed 1.7 basis points to 3.227 percent.
