Kospi hits two-year high with tech-led rally on Wall Street

The Kospi increased 19.82 points, or 0.72 percent, to close at 2,763.92, the highest since Feb. 20, 2022, when the comparable reading was 2,771.93.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,763.92 points on Tuesday, up 0.72 percent, or 19.82 points, from the previous trading session. [NEWS1]

Shares closed up on Tuesday, hitting a two-year high as foreign investors scooped up blue chips after a tech-led rally on Wall Street. The local currency slightly gained ground against the dollar.

The Kospi increased 19.82 points, or 0.72 percent, to close at 2,763.92, the highest since Feb. 20, 2022, when the comparable reading was 2,771.93.

Trade volume was moderate at 552 million shares worth 13 trillion won ($9.41 billion), with losers outnumbering winners 497 to 376.

Foreign investors purchased a net 639 billion won worth of local shares to lead the bullish market, offsetting net selling of 349.7 billion won and 220.7 billion won by individuals and institutions, respectively.

Overnight, U.S. stocks were buoyed by big tech shares, with Apple, Microsoft and Micron advancing. The Dow Jones Industrial Average gained 0.49 percent, and the Nasdaq Composite advanced 0.95 percent.

In Seoul, chipmakers and automakers finished in positive territory.

Samsung Electronics rose 2.18 percent to 79,800 won, and SK hynix jumped 5.16 percent to 234,500 won.

Hyundai Motor and Kia gained 1.62 percent and 1.47 percent to 283,000 won and 131,000 won, respectively, on news that its Indian unit is set for an initial public offering.

The Korea Gas Corp. vaulted 4.69 percent to 55,800 won on continuing expectations for developing potential oil and gas reserves in the East Sea.

Battery, oil refinery and entertainment shares, however, went south.

LG Energy Solution dropped 1.63 percent to 331,000 won, and SK innovation sank 5.24 percent to 103,100 won.

Hybe retreated 1.28 percent to 199,900 won, and CJ ENM declined 4.03 percent to 83,400 won.

SK fell 4.47 percent to 169,000 won after its chairman, Chey Tae-won, claimed a "critical error" in his record divorce ruling the previous day.

The local currency closed at 1,381.1 won against the greenback, down 0.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 0.3 basis points to 3.215 percent, and the return on the benchmark U.S. 10-year government bonds added 5.8 basis points to 4.282 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]