Seoul shares gain 0.74 pct on eased China woes

South Korean stocks closed 0.74 percent higher Tuesday as worries about a worsening Chinese economy eased, analysts said. The local currency rose sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 13.50 points to finish at 1,830.35. Trading volume was light at 254.4 million shares worth 3.11 trillion won (US$2.71 billion) with gainers outpacing losers 499 to 286.

"Some predicted a 6-percent level on-year growth for China. But investors seem to have dispelled the negative scenario as the Shanghai index fared pretty well on Tuesday," said Han Beom-ho, an analyst at Shinhan Investment Corp.

Asia's No. 1 economy is due to release its gross domestic product (GDP) for the second quarter on Wednesday. The Shanghai Index traded up 0.3 percent as of 3:10 p.m.

With the start of U.S. corporate earnings season, investors are hoping for better results, Han added.

Institutions scooped up local equities worth a net 147.4 billion won, while foreigners sold off a net 101.1 billion won.

Large-cap shares drove up the KOSPI, led by tech and auto blue-chips. Samsung Electronics gained 0.9 percent to 1,237.000 won, with Hyundai Motor soaring 1.64 percent to 217,500 won.

Chipmaker SK hynix also shot up 1.98 percent to 28,350 won.

In contrast, telecom and utility shares lost ground. Top mobile carrier SK Telecom fell 0.93 percent to 213,000 won and state-run electricity provider Korea Electric Power Corp. dipped 1.64 percent to 26,950 won.

Shares of Asiana Airlines Inc., South Korea's second-largest air carrier, managed to rebound 1.14 percent to 4,880 won, after tumbling nearly 6 percent on Monday following the plane crash in San Francisco.

The local currency ended at 1,141.70 won against the greenback, up 10.6 won from Monday's close, as investors unloaded their dollar holdings on profit-taking, dealers said.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasuries edged down 0.01 percentage point to 2.99 percent and the return on the benchmark five-year government bonds fell 0.02 percentage point to 3.29 percent. (Yonhap News)