Seoul stocks surge nearly 2% higher on eased Ukraine tensions

South Korean stocks rebounded nearly two percent Wednesday, snapping a three-day losing streak, as Ukraine tensions eased. The Korean won increased against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) surged 53.14 points, or 1.99 percent, to close at 2,729.68 points.

Trading volume was moderate at about 415 million shares worth some 8.3 trillion won ($6.9 billion), with losers far outnumbering gainers 832 to 64

Foreign and retailer investors sold a net 43.1 billion won and 208.1 billion won respectively, while institutions alone scooped up 225.6 billion won.

The index opened higher after US stock market closed bullish on the back of overall gains in tech shares amid eased tensions over Russia's possible invasion of Ukraine. Russia indicated it had withdrawn some of its troops from the border.

"Partial pullout of Russian troops acted positively to boost investor sentiment," said HI Investment & Securities analyst Park Sang-hyun, adding falling oil prices also buoyed demand for risky assets.

Analysts, however, said the tensions were far from being completely resolved, and the market may face downward momentum until the March meeting of the FOMC.

In Seoul, most large-cap shares closed higher.

Market kingpin Samsung Electronics closed 1.49 percent higher at 74,800 won, and No. 2 chipmaker SK hynix increased 2.76 percent to 139,500 won. LG Energy Solution went up 0.89 percent to 455,500 won after a choppy session.

Internet portal operator Naver increased 1.88 percent to 324,500 won, and LG Chem jumped 4.98 percent to 653,000 won, with leading platform operator Kakao adding 4.08 percent to 91,900 won.

Among losers, leading game maker NCSOFT went down 4 percent to a 52-week low of 492,500 won following weak earnings reports.

The local currency closed at 1,197.6 won against the US dollar, up 2.2 won from the previous session's close. (Yonhap)