Seoul shares spike 1.16 pct on U.S. budget hopes

SEOUL, July 20 (Yonhap) -- South Korean stocks finished 1.16 percent higher Wednesday, led by tech companies, as investors were relieved by signs of progress in talks about the U.S. debt ceiling, analysts said. The local currency climbed against the U.S. currency.
Snapping a two-session losing streak, the benchmark Korea Composite Stock Price Index (KOSPI) rose 24.74 points to 2,154.95. Trading volume was moderate at 369 million shares worth 8.28 trillion won (US$7.84 billion) with gainers outstripping losers 536 to 307.
"Expectations that talks about raising the U.S. debt ceiling would find a positive resolution sent stocks higher," said Lee Sun-yub, an analyst at Shinhan Investment Corp.
U.S. President Barack Obama embraced a $3.7 trillion debt-cutting plan earlier in the day, which added to investor optimism about the future of the U.S. economy.
Foreign investors, however, remained net sellers for a seven straight session, unloading 150.3 billion won worth of shares.
"Foreign investors seemed to be inclined to wait until they see the final resolution of the debt talks," Lee said.
Blue-chip tech shares were the brightest spots as a forecast-beating earnings release from Apple whetted investor appetite for local tech companies, which supply components to the maker of the iPhone and iPad.
Samsung Electronics, which supplies chips to Apple and competes with the U.S. company in smartphones and tablet PCs, jumped 3.53 percent to 851,000 won.
LG Display, the world's second-largest maker of liquid crystal display (LCD) panels, which supplies display screens to Apple, soared 4.8 percent to 30,550 won.
Chipmaking giant Hynix Semiconductor also rose 3.64 percent to 24,200 won, one day ahead of its second-quarter earnings release.
The local currency closed at 1,055.3 won to the greenback, up 4.4 won from Tuesday's close, as expectations that U.S. lawmakers would reach an agreement on the debt ceiling stoked appetite for risky assets, dealers said.
ylee@yna.co.kr