Kospi opens sharply higher to gain ground after record losses

Stocks began sharply higher Tuesday following the previous session's worst crash over mounting U.S. recession fears and the sluggish performance of big tech shares.

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Tuesday. [NEWS1]

Stocks began sharply higher Tuesday following the previous session's worst crash over mounting U.S. recession fears and the sluggish performance of big tech shares.

The benchmark Kospi gained 106.11 points, or 4.35 percent, to 2,547.66 in the first 15 minutes of trading.

During the session, the bourse operator issued a sidecar order at 9:06 a.m., halting program purchasing for five minutes, after the Kospi 200 index rose over 5 percent for more than one minute.

It was the first sidecar order for program buying since June 16, 2020.

The Korean stock market suffered its largest daily loss of nearly 9 percent on Monday.

Following weak economic data last week, including the U.S. payroll report, fears that the world's largest economy is losing steam shook global markets.

Overnight, the Dow Jones Industrial Average fell 2.6 percent and the tech-heavy Nasdaq Composite dropped 3.4 percent.

In Seoul, most major shares started in positive territory.

Samsung Electronics rose 4.62 percent and its rival SK hynix gained 5.83 percent.

Battery maker LG Energy Solution advanced 4.19 percent and carmaker Hyundai Motor jumped 5.13 percent.

Chemicals manufacturer LG Chem increased 4.04 percent and oil refinery SK Innovation vaulted 6.25 percent.

The local currency was trading at 1,371.45 won against the dollar, up 3.35 won from the previous session's close.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]