KOSPI extends gains for third straight session as US shutdown fears ease
Seoul’s stock market closed higher on Wednesday for the third consecutive session, supported by reduced worries over the longest U.S. government shutdown in history.
The Korean won weakened against the U.S. dollar, News.Az reports, citing Yonhap.
The Korea Composite Stock Price Index (KOSPI) gained 44 points, or 1.07%, closing at 4,150.39. Trading volume was moderate at 327.08 million shares valued at 15.43 trillion won (US$10.5 billion), with 785 gainers compared to 118 decliners.
The index opened lower due to losses in technology stocks but rebounded as large-cap shares recovered. U.S. markets closed mixed overnight, with the Dow Jones up 1.18% and the Nasdaq down 0.25%. Technology shares on Wall Street declined after SoftBank Group sold its entire stake in Nvidia to fund artificial intelligence investments.
Institutions bought a net 912.67 billion won worth of stocks, offsetting foreigners and individuals' stock selling of 427.99 billion won and 446.62 billion won, respectively.
Progress toward ending the U.S. government shutdown continued to boost investor sentiment, analysts said.
The record-setting 42-day shutdown is expected to end as early as Wednesday (U.S. time) after the Senate passed a temporary spending package. U.S. President Donald Trump has expressed support for the legislation.
"Expectations for an imminent end to the shutdown buoyed investor sentiment, but gains in the KOSPI were limited due to a lack of fresh upward momentum," said Han Ji-young, an analyst at Kiwoom Securities.
In Seoul, auto and energy stocks led the gains.
Top carmaker Hyundai Motor rose 2.42 percent to 275,500 won and its smaller affiliate Kia climbed 2.24 percent to 118,600 won.
Leading shipbuilder HD Hyundai Heavy Industries gained 0.37 percent to 536,000 won, and leading refiner SK Innovation jumped 3.43 percent to 126,500 won.
Among decliners, Samsung Electronics fell 0.39 percent to 103,100 won and its chip rival SK hynix declined 0.32 percent to 617,000 won.
State-run utility firm Korea Electric Power Corp. dropped 3.83 percent to 47,650 won, and LG Chem shed 1.5 percent to 393,500 won.
The local currency was quoted at 1,465.70 won against the greenback at 3:30 p.m., down 2.4 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 9.2 basis points to 2.923 percent, and the return on the benchmark five-year government bonds climbed 9.7 basis points to 3.088 percent.
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