South Korea’s benchmark stock index closed nearly 1 percent higher Tuesday as technology shares rose and investors monitored the prospect of fresh U.S.-Iran negotiations in Qatar.
The Korea Composite Stock Price Index (KOSPI) gained 81.83 points, or 0.97%, to end at 8,476.47, according to data from Yonhap News Agency via United Press International. The index had closed above 9,100 on June 22 before pulling back over the following eight sessions.
Investor sentiment improved after the United States and Iran were set to resume talks in Qatar aimed at easing tensions in the Strait of Hormuz, alleviating concerns over a prolonged disruption to global oil supplies. Crude prices rose modestly as traders monitored implementation of the U.S.-Iran peace framework.
Overnight, Wall Street rallied, with the Dow Jones Industrial Average gaining 0.59% to close at a record high. The Nasdaq composite jumped 2.07% and the S&P 500 advanced 1.18%.
Technology shares lifted the overall market in Seoul. Market bellwether Samsung Electronics rose 3.41% to 334,000 won, and chip giant SK hynix gained 0.84% to 1.65 million won. SK Square, the parent of SK hynix, advanced 3.48% to 1.69 million won.
Chip components maker Samsung Electro-Mechanics jumped 7.16% to 1.18 million won after announcing a 454 billion-won supply deal for multilayer ceramic capacitors for artificial intelligence servers to a U.S.-based customer.
Daishin Securities analyst Lee Kyoung-min said investors scooped up semiconductor shares following recent losses, while IT infrastructure and electricity stocks rose on hopes for major investment in semiconductor infrastructure in the southwestern region announced by the government and chipmakers.
Battery shares retreated on profit-taking after sharp gains in the previous session. LG Energy Solution plunged 9.61% to 362,000 won, and its smaller rival Samsung SDI sank 4.88% to 487,000 won.
Trade volume was moderate at 444.61 million shares worth 41.08 trillion won (US$26.51 billion). Losers outnumbered winners 621 to 261. Institutions bought a net 2.93 trillion won and individuals bought a net 833.45 billion won worth of shares, while foreigners sold a net 3.79 trillion won.
The Korean won weakened against the U.S. dollar, quoted at 1,549.4 won per dollar as of 3:30 p.m., down 4.2 won from the previous session.