Seoul Shares Rise for Second Straight Session on Chip Gains

South Korean stocks ended higher for the second consecutive session on Tuesday as investors engaged in bargain hunting for major chipmakers. The benchmark Korea Composite Stock Price Index (KOSPI) rose 45.87 points, or 0.73 percent, to close at 6,345.53. The index initially opened 0.95 percent lower before reversing course, although market sentiment remained cautious due to the ongoing conflict in the Middle East.

Samsung Electronics shares rose 4.13 percent to 239,500 won, and SK hynix gained 0.35 percent to 1.42 million won. Other large cap stocks saw mixed results: LG Energy Solution fell 3.54 percent, Hyundai Motor dropped 1.23 percent, and Samsung Electro Mechanics declined 0.94 percent. Trade volume reached 634.5 million shares worth 21.59 trillion won. Foreigners and institutions were net buyers, while retail investors offloaded a net 724.4 billion won in shares.

The gains followed a Monday session in the U.S. where the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all edged lower amid rising oil prices and uncertainty regarding the Strait of Hormuz. In currency markets, the Korean won gained ground against the U.S. dollar, quoted at 1,416 won at 3:30 p.m. Bond yields rose, with the three year Treasury yield increasing 3 basis points to 3.808 percent.