Seoul stocks spike over 1% on tech gains

South Korean stocks rallied by more than 1 percent Wednesday, mostly led by strong tech gains. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 43.24 points, or 1.34 percent, to close at 3,280.38 points. The figure marks the largest daily gain since May 10.

Trading volume was moderate at about 621 million shares worth some 12.2 trillion won (US$10.7 billion), with gainers outnumbering losers 713 to 149.

Foreigners bought a net 908 billion won, the largest daily purchase since March 11, while retail investors sold 1.8 trillion won. Institutions purchased a net 873 billion won.

The KOSPI got off to a solid start, tracking overnight rallies on Wall Street over optimism for strong corporate earnings.

The S&P 500 gained 0.82 percent to close at a record high, with the Dow Jones Industrial Average and the tech-heavy Nasdaq composite advancing 0.8 percent and 0.55 percent, respectively.

The KOSPI gained ground as major chipmakers continued to advance for the third day. Other tech heavyweights also rose on expectations of robust earnings.

"Investors seem to have regained confidence for corporate earnings from the recent earnings reports," Mirae Asset Securities analyst Park Gwang-nam said.

In Seoul, top cap Samsung Electronics gained 1.84 percent to 82,900 won, and No. 2 chipmaker SK hynix increased 0.83 percent to 121,000 won.

Internet portal operator Naver moved up 1.17 percent to 433,000 won, with its rival Kakao jumping 3.82 percent to 149,500 won.

Giant pharmaceutical firm Samsung Biologics lost 0.66 percent to 903,000 percent, while top automaker Hyundai Motor climbed 0.67 percent to 225,000 won. Leading chemical firm LG Chem added 0.35 percent to 856,000 won.

SK Innovation slumped 3.75 percent to 243,500 won after the firm decided to spin off its battery business.

The local currency closed at 1,143.6 won against the US dollar, up 4.7 from the previous session's close. (Yonhap)