Kospi closes higher despite lingering AI concerns, Middle East conflict
The Kospi pared earlier gains to close at 6,358.95, up 101.5 points, or 1.62 percent, after falling as low as 6,080.25.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,358.95 points on Aug. 4, up 101.50 points, or 1.62 percent, from the previous trading session.
NEWS1
Shares closed higher on Tuesday, with retail investors snapping up stocks following the previous session’s over 5 percent plunge, though lingering uncertainty over AI and the Middle East conflict capped gains despite an overnight rebound on Wall Street.
After choppy trading, the benchmark Kopsi pared earlier gains to close at 6,358.95, up 101.5 points, or 1.62 percent, after falling as low as 6,080.25.
The index tumbled 5.12 percent on Monday after surging a record 18 percent on Friday.
Trade volume was moderate at 310.58 million shares worth 27.87 trillion won ($19.4 billion), with winners far outnumbering losers 786 to 95.
Overnight, U.S. stocks advanced as Amazon gained 4.5 percent after reporting strong earnings, helping lift shares of companies benefiting from demand for AI.
The Dow Jones Industrial Average rose 1.32 percent to 53,178.41, and the tech-heavy Nasdaq composite climbed 2.13 percent to 25,913.9.
Retail investors bought a net 818.4 billion won worth of stocks, while institutional and foreign investors sold a net 539.2 billion won and 370.56 billion won, respectively.
Investors remain concerned about whether massive investments in AI will lead to stronger growth and profits.
This week, market participants are closely watching geopolitical developments and upcoming U.S. jobs data for fresh clues on the Federal Reserve’s rate policy, analysts said.
In Seoul, tech stocks led the market advance.
Samsung Electronics rose 0.21 percent to 240,000 won, and SK hynix climbed 0.64 percent to 1,577,000 won.
Hanwha Aerospace jumped 9.25 percent to 1,004,000 won, and Korea Aerospace Industries jumped 11.16 percent to 137,500 won.
Hyundai Motor fell 0.13 percent to 392,500 won, and Korean Air declined 0.38 percent to 26,100 won.
The won gained 2.9 won from the previous session against the greenback at 3:30 p.m.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.2 basis points to 3.740 percent, and the return on the benchmark five-year government bonds dropped 1 basis point to 4.004 percent.
Yonhap
