Seoul stocks up for 5th day on easing inflation jitters

South Korean stocks advanced for a fifth straight session Thursday, backed by the US Federal Reserve's economic diagnosis that partially eased market jitters over early post-pandemic inflation. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.2 points, or 0.72 percent, to close at 3,247.43 points, just shy of its all-time high close of 3,249.3 points on May 10.

Trading volume was moderate at about 1.6 billion shares worth some 16.7 trillion won ($15 billion), with gainers outnumbering losers 425 to 402.

Foreigners bought a net 232 billion won, while retail investors sold 685 billion won. Institutions purchased a net 449 billion won.

The KOSPI advanced for the fifth session, bolstered by strong foreign and institutional buying.

Overnight, the tech-heavy Nasdaq Composite gained 0.14 percent, following the Fed's reiteration of its stance that the ongoing price hike is likely transient. The Dow Jones Industrial Average and the S&P 500 edged up 0.07 percent and 0.14 percent, respectively.

The KOSPI's gain was led by tech and bio advances, while construction and insurance slumped.

"After the latest stock price adjustment, tech stocks rebounded on expectations of strong second-quarter corporate earnings, (lifting the KOSPI,)" Yuanta Securities analyst Cho Byung-hyun said.

Amid the KOSPI's increasing valuation, local investors are eyeing the upcoming US job data for May, set to be released Friday (US time).

In Seoul, market bellwether Samsung Electronics added 2.48 percent to 82,800 won, and No. 2 chipmaker SK hynix advanced 2.38 percent to 129,000 won.

Internet portal operator Naver moved down 0.28 percent to 362,000 won, but giant pharmaceutical firm Samsung Biologics increased 0.73 percent to 824,000 won.

Top automaker Hyundai Motor climbed 0.21 percent to 238,500 won, and leading chemical firm LG Chem gained 0.62 percent to 812,000 won.

The local currency closed at 1,113.6 won against the US dollar, down 0.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.5 basis points to 1.191 percent, and the return on the benchmark five-year government bond fell 1.6 basis points to 1.715 percent. (Yonhap)