Stocks rise for a second day on China reopening optimism

Stocks closed higher for a second consecutive day on Tuesday on solid buying by foreign and institutional investors on hopes for China's reopening, with eyes on the U.S. Federal Reserve's policy direction. The local currency rose against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,332.79 points on Tuesday, up 15.65 points, or 0.68 percent, from the previous trading day. [NEWS1]

Stocks closed higher for a second consecutive day on Tuesday on solid buying by foreign and institutional investors on hopes for China's reopening, with eyes on the U.S. Federal Reserve's policy direction. The local currency rose against the dollar.

The Kospi added 15.65 points, or 0.68 percent, to close at 2,332.79 points.

Trading volume was moderate at 425.4 million shares worth some 6.9 trillion won ($5.4 billion). Gainers outnumbered decliners 665 to 206.

Institutions and foreigners bought a net 1.15 trillion won, while retail investors offloaded 1.1 trillion won.

"The Kospi opened higher ahead of the dividend season due Wednesday but trimmed earlier gains as retail investors went on selling mode," analyst Lee Kyoung-min from Daishin Securities said.

The market was buoyed by hopes that China will reopen soon, following Beijing's announcement Monday that it would relax antivirus measures on inbound travelers, Lee said.

In Seoul, market heavyweights ended mixed.

Samsung Electronics advanced 0.35 percent to 58,100 won, while SK hynix stayed unchanged at 77,000 won.

Samsung SDI remained flat at 624,000 won, while LG Energy Solutions slid 0.11 percent to 457,000 won.

Samsung Biologics added 0.73 percent to 828,000 won and Celltrion increased by 0.85 percent to 177,000 won.

Hyundai Motor stayed unchanged at 156,000 won while Kia increased by 0.63 percent to 64,100 won.

Amorepacific jumped 6.39 percent to 141,500 won and LG Household & Health Care climbed 3.73 percent to 723,000 won on optimism for China's reopening.

Among decliners, Korean Air inched down 0.41 percent to 24,200 won and Asiana Airlines decreased 0.72 percent to 13,850 won. State-run Korea Electric Power Corp. dipped 0.92 percent to 21,500 won.

The local currency closed at 1,271.4 won against the dollar, down 3.4 won from the previous session's close.

The Kosdaq climbed 9.51 points, or 1.37 percent, to close at 704.19 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds decreased 0.3 basis points to 3.661 percent, and the yield on the benchmark 10-year government bonds increased 6.70 basis points to 3.747 percent.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]