Seoul shares up 2.55 pct on tech, bank rallies

(ATTN: ADDS bond yields at bottom)
SEOUL, July 15 (Yonhap) -- South Korean stocks closed up 2.55 percent Wednesday
as foreign investors picked up tech, bank and other large-cap shares, encouraged
by overnight advances in U.S. markets. The local currency jumped against the U.S.
dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rallied 35.3 points to
1,420.86. Volume was moderate at 390.99 million shares worth 5.17 trillion won
(US$4.04 billion), with winners outpacing losers 627 to 178.
"Better-than-expected earnings reports by major U.S. companies bolstered market
sentiment here, prompting foreign investors to pick up local shares," said Bae
Sung-young, an analyst at Hyundai Securities. "Tech and bank issues drove the
market upswing."
Bolstered by Intel's earnings report that beat market consensus on Tuesday,
chipmaking giant Samsung Electronics jumped 5.05 percent to 666,000 won as demand
for its products from the U.S. company could increase down the road. Smaller
Hynix Semiconductor also closed up 5.08 percent to 15,500 won.
Financial companies joined the upward trend, with major banks gaining substantial
ground after Goldman Sachs' better-than-expected earnings eased anxiety over
market instability.
KB Financial Group, the parent for top lender Kookmin Bank, gained 6.99 percent
to 49,000 won, while Hana Financial Group, the parent for fourth-largest lender
Hana Bank, rose 4.29 percent to 30,400 won.
Automakers also ended higher with industry leader Hyundai Motor rising 1.48
percent to 75,500 won. Second-ranked Kia Motors surged 5.47 percent to 14,450
won.
On Tuesday, U.S. markets closed higher on brisk corporate earnings and economic
indicators. The Dow Jones industrial average rose 0.33 percent and the tech-laden
Nasdaq composite index also gained 0.36 percent.
The local currency ended at 1,278.5 won against the greenback, up 14.5 won from
Tuesday's close, as stock gains and eased financial woes helped reduce investors'
appetite for safer bets, dealers said.
Bond prices, which move inversely to yields, closed sharply lower. The return on
three-year Treasuries jumped 0.03 percentage point to 3.99 percent, and the
benchmark yield on five-year government bonds also gained 0.06 percentage point
to 4.54 percent.
kokobj@yna.co.kr
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