Stocks rise for third consecutive session on Tuesday

A screen in the Hana Bank trading floor in central Seoul shows the Kospi closing at 2,533.52 points on Tuesday, up 5.58 points, or 0.22%, from the previous trading day. [YONHAP]

Stocks rose for a third straight session on Tuesday amid investor speculation that central banks in major economies could ease monetary tightening after weak economic data out of China. The won fell against the dollar.

The Kospi added 5.58 points, or 0.22%, to close at 2,533.52 points.

Trading volume was moderate at around 389 million shares worth around 7.9 trillion won ($6 billion), with losers outnumbering winners by 421 to 414.

Institutions sold a net amount of 25.0 billion won, and retail investors sold 53.1 billion won. Foreigners bought a net amount of 57.8 billion won.

Stocks got off to a strong start despite weaker-than-expected retail sales in July and industrial production in China, the country’s biggest trading partner.

US 12-month inflation expectations also declined from a month ago, prompting optimism that the Federal Reserve may ease its hawkish rate hike moves.

The Kospi’s gain was led by big tech, which is generally more sensitive to borrowing costs due to high capital expenditure.

“Investors seem to have interpreted the weak data from China and the United States as a sign that may ease inflationary pressure. Local stock markets seem to have digested this factor after the holidays,” said Han Ji-young, an analyst at Kiwoom Securities.

Samsung Electronics advanced 1.33% to 61,000 won as its de facto chief Lee Jae-yong won a presidential pardon last week over a corruption case involving a former Korean president.

SK hynix jumped 3.64% to 96,700 won, following a visit by US Microsoft co-founder Bill Gates to Seoul. On Monday, the two main subsidiaries of the SK group announced that they would jointly develop next-generation technologies for small modular reactors (SMRs) with the American nuclear reactor design company TerraPower, founded by Gates.

The local currency closed at 1,308.1 won against the US dollar, up 5.7 won from the previous session’s close.

The Kosdaq advanced 3.11 points, or 0.37%, to close at 834.74 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 10.7 basis points to 3.083%, and the yield on 10-year government bonds fell 5.2 basis points to 2.79%.

BY LIM JEONG-WON, YONHAP [[email protected]]

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