Kospi rebounds 0.83% on U.S. rally ahead of Jackson Hole

The Kospi added 22.27 points, or 0.83 percent, to close at 2,696.63 as U.S. markets rallied ahead of the Jackson Hole Economic Symposium.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,696.63 points on Tuesday, up 0.83 percent, or 22.27 points, from the previous trading session. The Kosdaq rose 1.28 percent, or 9.97 points, to 787.44. [NEWS1]

Shares rebounded on Tuesday following a rally in the U.S. market ahead of this week's Jackson Hole symposium. The local currency gained against the dollar.

The Kospi closed at 2,696.63 points, up 0.83 percent, or 22.27 points, from the previous trading session. The Kosdaq rose 1.28 percent, or 9.97 points, to 787.44.

Trade volume was moderate at 473 million shares worth 8.69 trillion won ($6.52 billion), with gainers outnumbering losers 644 to 245.

Foreigners bought a net 254.2 billion won worth of shares, while individuals offloaded a net 280 billion won. Institutions bought a net 3.83 billion won.

Overnight, the tech-heavy Nasdaq composite and the S&P 500 both extended their gains to eight consecutive sessions, the longest this year, brushing off concerns of a recession in the world's largest economy.

"Seoul shares gained ground on the back of momentum in the U.S. market, ahead of the Jackson Hole meeting," said Han Ji-young, an analyst at Kiwoom Securities.

U.S. Federal Reserve Chair Jerome Powell is expected to offer more clues on the central bank's policy direction during the upcoming symposium.

In Seoul, Samsung Electronics moved up 0.77 percent to 78,900 won, and SK hynix added 2.99 percent to 199,700 won.

Financial shares traded bullish as well, with KB Financial advancing 3.33 percent to 89,900 won and Shinhan Financial rising 2.1 percent to 58,400 won.

Pharmaceutical firms, on the other hand, traded lower, with Samsung Biologics falling 2.47 percent to 907,000 won and Celltrion losing 0.71 percent to 196,200 won.

Chemical firms closed mixed, with LG Chem rising 0.69 percent to 291,500 won and oil refiner SK Innovation advancing 2.2 percent to 102,400 won. Cosmetics firm Amorepacific shed 1.14 percent to 121,500 won.

The local currency was trading at 1,333.2 won against the dollar as of 3:30 p.m., down 0.8 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 1.6 basis points to 2.944 percent and the return on the benchmark U.S. 10-year bonds dropped 0.9 basis points to 3.872 percent.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]