Seoul shares end over 6% higher on tech rally despite Middle East tensions

Seoul shares ended more than 6 percent higher Wednesday, led by gains in technology heavyweights, although persistent tensions in the Middle East remained a key concern for investors. The Korean won rose against the US dollar.

After opening 3.3 percent higher, the benchmark Korea Composite Stock Price Index extended its gains to close at 7,284.41, up 427.58 points, or 6.24 percent from a session earlier.

Local stocks advanced after Tuesday’s softer-than-expected US inflation data lifted Wall Street overnight and eased concerns over near-term Federal Reserve interest-rate hikes.

“Softer-than-expected US consumer price index data helped ease inflation concerns, which had intensified amid the continuing conflict in the Middle East,” Lim Jung-eun, an analyst at KB Research, said.

The United States and Iran have recently exchanged fresh rounds of strikes over the status of the Strait of Hormuz, pushing up oil prices.

Overnight, the Dow Jones Industrial Average edged up 0.02 percent, while the tech-heavy Nasdaq composite gained 0.9 percent.

Institutional and foreign investors bought a net 182.68 billion won ($123 million) and 2.32 trillion won worth of shares, respectively, while retail investors sold a net 2.47 trillion won.

In Seoul, tech stocks led the gains.

Market bellwether Samsung Electronics jumped 6.27 percent to 279,500 won, while rival chipmaker SK hynix surged 8.83 percent to 2,082,000 won.

Leading automaker Hyundai Motor rose 2.24 percent to 434,000 won, defense company Hanwha Aerospace climbed 6.54 percent to 929,000 won, and steelmaker POSCO Holdings gained 3.62 percent to 314,500 won.

Among decliners, state-run utility Korea Electric Power Corp. fell 0.15 percent to 33,900 won, while discount store chain Emart slipped 1.52 percent to 79,400 won.

The Korean won was quoted at 1,484.7 won against the US dollar at 3:30 p.m., compared with 1,493 won in the previous session. (Yonhap)

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