Seoul Shares End Modestly Higher to Snap Two Day Losing Streak

South Korean stocks ended modestly higher on Monday, snapping a two day losing streak. The benchmark Korea Composite Stock Price Index (KOSPI) rose 40.89 points, or 0.65 percent, to close at 6,299.66 after choppy trading. The index opened 0.76 percent higher and surged as much as 2.16 percent in early trading before paring gains and moving mostly sideways amid heavy foreign selling.

Investors engaged in bargain hunting for chip related shares following a record setting rally on Wall Street. On Friday, the Dow Jones Industrial Average rose 0.28 percent, the S&P 500 added 0.62 percent to a fresh record, and the Nasdaq Composite Index increased 1.3 percent. These gains followed U.S. job reports that eased concerns over a rate hike.

Large cap stocks in Seoul finished mixed. Samsung Electronics fell 0.43 percent to 230,000 won and SK hynix edged down 0.14 percent to 1.42 million won. Analysts noted that semiconductor stocks faced pressure due to reports that Apple may adopt memory chips from Chinese chipmaker CXMT. Conversely, LG Energy Solution gained 2.08 percent to 367,500 won and Hyundai Motor rose 3.16 percent to 408,000 won.

Trade volume reached 629.9 million shares worth 29.09 trillion won. Foreign investors sold a net 1.48 trillion won worth of stocks, while institutions and retail investors purchased a net 567.4 billion won and 899.8 billion won, respectively. The Korean won weakened against the U.S. dollar, quoted at 1,418.4 won at 3:30 p.m. down 2.3 won from the previous session. Bond prices closed lower, with the yield on three year Treasurys rising 3.2 basis points to 3.778 percent.