Seoul shares spike over 1% on eased US recession woes

South Korean stocks closed more than 1 percent higher Monday, recovering from last week's rout as concerns over a US economic recession eased. The local currency lost ground against the US dollar.

The benchmark Korea Composite Stock Price Index gained 29.87 points, or 1.15 percent, to 2,618.30, rising for the second consecutive day.

Trade volume was slim at 286.2 million shares worth 7.4 trillion won ($5.4 billion), with winners far outnumbering losers 674 to 202.

Foreigners and institutions led the increase, purchasing local shares worth 76 billion won and 149 billion won, respectively, while retail investors sold 206.4 billion won.

On Friday, Wall Street finished higher as recession woes diminished thanks to better-than-expected unemployment data.

Investors' eyes are now on the US consumer price, producer price and retail sales data due out later this week.

"The Kospi has made an upturn as recession fears were relieved to some degree, and investors are now focusing on the fundamentals, such as corporate earnings and exports," Roh Dong-gil, an analyst at Shinhan Securities, said.

"In particular, AI chip shares, including SK hynix, were bullish as concerns surrounding an AI bubble partially dwindled," he added.

Market bellwether Samsung Electronics increased 1.07 percent to 75,500 won, and its chipmaking rival SK hynix shot up 3.21 percent to 177,000 won.

Leading battery maker LG Energy Solution jumped 2.02 percent to 328,500 won, and its smaller rival Samsung SDI soared 3.06 percent to 319,500 won.

Major biopharmaceutical firm Celltrion also surged more than 2 percent to 200,000 won.

But internet portal operator Naver shed 2.08 percent to 160,300 won, and major defense and shipbuilding company HD Hyundai Heavy lost 1.65 percent to 208,500 won.

The local currency had been trading at 1,372.0 won against the greenback as of 3:30 p.m., down 7.4 won from the previous session's close. (Yonhap)