Seoul shares up 0.77 pct on recovery hopes

(ATTN: ADDS bond yields at bottom)
SEOUL, July 5 (Yonhap) -- South Korean stocks closed 0.77 percent higher on Tuesday as foreigners and institutions snapped up blue chips amid easing worries on a slowing global economy, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 16.45 points to 2,161.75, extending its winning streak to a fifth session. Trading volume was moderate at 281.3 million shares worth 6.3 trillion won (US$5.9 billion), with gainers outnumbering losers 489 to 324.
"Foreigners and institutions snapped up shares of technology firms and financial companies, boosted by weakening jitters over a slowdown in the global economy," Lee Sun-yup, an analyst at Shinhan Investment Corp, said, adding the two sectors tend to especially benefit from an economic upturn.
Overseas investors picked up a net 376.8 billion won, remaining net buyers for the fifth straight session.
"There's still a lot of money out there waiting to be invested, which means more capital may flow into the stock market," he said.
Financial companies drove up the KOSPI, with state-run banking group Woori Finance Holdings gaining 1.41 percent to 14,400 won.
Techs, the biggest sector by market cap, also fueled the KOSPI's rise. Market bellwether Samsung Electronics rose 2.39 percent to 899,000 won on hopes that a global economic recovery would jack up overseas demand for electronic products.
Hynix Semiconductor, the world's No. 2 memory chip maker, jumped 3.9 percent to 28,000 won following a local media report that Hyundai Heavy Industries will likely make a solo bid for its majority stake.
In contrast, the world's top shipyard lost 1.3 percent to 455,000 won. Creditors are scheduled to close preliminary bids for Hynix Semiconductor on Friday.
Builders also ended bearish, with market leader Hyundai Engineering & Construction slipping 1.03 percent to 86,700 won.
The local currency ended at 1,066.3 won to the greenback, down 2.8 won from Monday's close, as investor appetite for risky currencies waned on growing views China will move to hike interest rates, dealers said.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries fell 0.02 percentage point to 3.76 percent and the return on the benchmark five-year government bonds dipped 0.03 percentage point to 4.01 percent.
mil@yna.co.kr