Stocks rebound as positive data fueled economic optimism

Stocks rebounded Monday, helped by strong economic data that fueled optimism for a quick economic boost from the pandemic.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,223.04 points on Monday, up 20.72 points, or 0.65 percent, from the previous trading day. [NEWS1]

Stocks rebounded Monday, helped by strong economic data that fueled optimism for a quick economic boost from the pandemic. The won fell against the dollar.

The benchmark Kospi rose 20.72 points, or 0.65 percent, to close at 3,223.04 points.

Trading volume was moderate at about 554 million shares worth some 10.1 trillion won ($8.8 billion), with losers outnumbering gainers 501 to 329.

Foreigners sold a net 146 billion won, while institutions bought 625 billion won. Retail investors offloaded 488 billion won.

Stocks got off to a bullish start as Korea's July exports jumped 29.6 percent on-year to a record high amid high demand for chips and autos.

The stock index pared its gains in the late morning, however, taking a cue from the overall retreat in the Asian markets, including Hong Kong and China.

The Kospi briefly retreated below the 3,200-point level in the wake of China's move to overhaul its tech firms and property markets. But stocks bounced back to gains, tracking the Chinese stock rebound.

"Investors turned to net buying in the futures market, taking a cue from the Chinese stock rebound," Shinhan Investment analyst Choi Yoo-joon said.

Samsung Electronics added 1.02 percent to close at 79,300 won, and chipmaker SK hynix jumped 3.11 percent to 116,000 won.

Internet portal operator Naver closed unchanged at 433,500 won, while its rival Kakao fell 0.68 percent to 146,000 won.

Pharmaceutical firm Samsung Biologics gained 2.58 percent to 913,000 won, and Celltrion added 3.94 percent to 263,000 won.

Chemical firm LG Chem increased 2.61 percent to 864,000 won, and automaker Hyundai Motor moved up 0.92 percent to 220,000 won. Its sister company Kia rose 1.32 percent to 84,700 won.

The Kosdaq gained 6.66 points, or 0.65 percent, to close at 1,037.80.

The local currency closed at 1,150.9 won against the dollar, up 0.6 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds added 1.8 basis points to 1.435 percent, and the yield on the benchmark 10-year government bond lost 4.0 basis points to 1.22 percent.

BY LEE TAE-HEE, YONHAP [lee.taehee2@joongang.co.kr]