South Korean shares rebound from 7-week low on tech-buying

SEOUL: Round-up of South Korean financial markets:

South Korean shares rebounded from a seven-week low hit in the previous session on Thursday, as heavyweight chipmakers followed an overnight rally in US semiconductor peers.

The benchmark KOSPI closed up 45.12 points, or 0.62%, at 7,291.91. During the session, it swung between gains of 4.1% and losses of 2.5%, reflecting the volatility in prices over the past few weeks.

The index fell on Wednesday for a third session to touch its lowest close since May 20, down more than 20% from a record-peak hit in late June, which is typically considered a confirmation of a bear market.

“Volatility heightened again, with the index erasing gains as retail investors sold shares on profit-taking pressure and worries around the chip sector,” said Lee Kyoung-min, an analyst at Daishin Securities.

The S&P 500 Index on Wall Street ended lower on Wednesday after US President Donald Trump said an interim deal aimed at ending the war with Iran was “over”.

Helping keep the tech-heavy Nasdaq in positive territory, Broadcom climbed 2.2% after Apple said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the US chipmaker.

Among South Korean index heavyweights, chipmaker Samsung Electronics rose 0.18%, while peer SK Hynix gained 5.30%. Battery maker LG Energy Solution slid 0.63%.

Of the total 913 traded issues, 237 shares advanced, while 652 declined.

Foreigners were net buyers of shares worth 137.5 billion won ($91.14 million).

Retail investors sold 1.3 trillion won. The won was quoted at 1,506.1 per dollar on the onshore settlement platform, 0.25% lower than its previous close at 1,502.4.

The most liquid three-year Korean treasury bond yield was flat at 3.776%, while the benchmark 10-year yield fell by 0.8 basis point to 4.240%. ‑Reuters