Key facts
- Seoul stocks closed up 3.56 percent on Tuesday.
- The KOSPI index gained 231.68 points to close at 6,747.95.
- Bargain hunting in semiconductors drove the market rebound.
- Semiconductor exports grew 180.6 percent as of July 20.
- The Korean won closed higher against the U.S. dollar.
Seoul stocks snapped their two-day losing streak and closed sharply higher on Tuesday, as investors engaged in bargain hunting for technology heavyweights. The benchmark Korea Composite Stocks Price Index (KOSPI) closed up 231.68 points, or 3.56 percent, at 6,747.95.
The index experienced a rebound around noon after an initial dip, prompting the bourse operator to halt program trading for five minutes. Lee Kyoung-min, an analyst from Daishin Securities, stated that local stocks were boosted by bargain hunting concentrated on semiconductors.
Despite recent sharp drops in major chipmakers like Samsung Electronics and SK hynix, global investment banks have maintained a positive outlook on the memory chip sector, citing strong underlying fundamentals. This sentiment was further supported by recent export data, which indicated that semiconductor outbound shipments grew by 180.6 percent as of July 20, marking the highest for any July.
Additionally, the Korean won closed higher against the U.S. dollar. The analyst also noted that increased risk appetite was partly due to Tehran confirming receipt of new mediation proposals from Pakistan and Qatar aimed at resolving the conflict with the United States.