South Korean Stocks Surge for 4th Straight Session, Led by Chipmakers

SEOUL, Aug. 13 (Yonhap) -- South Korean stocks ended sharply higher for the fourth straight session Thursday as investors scooped up major chipmakers. The Korean won gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 234.3 points, or 3.56 percent, to close at 6,813.34, following 0.65 percent, 0.73 percent and 3.68 percent gains in the previous three sessions. After opening 2.96 percent higher, the KOSPI further added gains as foreigners and institutions scooped up major chip heavyweights. Trade volume was moderate at 416 million shares worth 34.45 trillion won (US$24.22 billion) trading hands, with losers outnumbering gainers 532 to 332. Foreigners and institutions purchased a net 2.09 trillion won and 679.8 billion won worth of stocks, respectively, while retail investors alone offloaded a net 2.71 trillion won in shares.

Overnight, U.S. stocks tied to the artificial intelligence technology sector rose. The S&P 500 gained 0.26 percent, closing just shy of a record high, while the Nasdaq composite advanced 0.54 percent. In contrast, the Dow Jones Industrial Average edged down 0.04 percent.

"Foreign buying remained strong, helped by relief that the U.S. consumer price index for July came in line with expectations and a series of strong earnings reports from AI infrastructure companies," Kang Jin-hyeok, an analyst at Shinhan Securities Co., said.

In Seoul, large-cap stocks finished higher. Semiconductor heavyweight Samsung Electronics shot up 4.89 percent to 268,000 won per share and its rival SK hynix gained 5.91 percent to 1.59 million won, both extending the winning streak for three straight sessions. SK Square, the parent of SK hynix, jumped 9.08 percent to 1.12 million won, and Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, shot up 12.58 percent to 1.5 million won. LG Energy Solution went up 1.95 percent to 365,500 won, and No. 1 automaker Hyundai Motor increased 2.1 percent to 418,500 won.

The Korean won was quoted at 1,419.4 won against the U.S. dollar at 3:30 p.m., up 3.7 won from the close of stock trading the day before. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys went down 1 basis point to 3.781 percent, while the return on the benchmark five-year government bonds shed 0.9 basis point to 4.016 percent.