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Seoul stocks rebound on strong corporate earnings

The benchmark Korea Composite Stock Price Index (Kospi) figures are displayed at a dealing room of a local bank in Seoul, Tuesday. (Yonhap)
The benchmark Korea Composite Stock Price Index (Kospi) figures are displayed at a dealing room of a local bank in Seoul, Tuesday. (Yonhap)
South Korean stocks rebounded Tuesday as investor sentiment improved on optimism for strong corporate earnings despite the spreading new coronavirus pandemic. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.58 points, or 0.24 percent, to close at 3,232.53 points.

Trading volume was moderate at about 978 million shares worth some 12.1 trillion won ($10.5 billion), with gainers outnumbering losers 534 to 287.

Foreigners bought a net 44 billion won, while retail investors sold 279 billion won. Institutions purchased a net 227 billion won.

Stocks rebounded after the KOSPI closed down nearly 1 percent the previous session on market jitters about China's clampdown on education tech firms and its property market.

Local large caps of various sectors continued to report robust earnings in the April-June period this week, signaling that South Korea's economy is continuing to recover.

South Korea's daily new coronavirus cases stayed in the 1,300s for the second day in a row Tuesday under the toughest virus curbs in the greater Seoul area.

"Estimate-beating earnings by multiple companies like SK hynix seem to have fueled expectations of robust quarterly earnings in general," said Kiwoom Securities analyst Han Ji-young.

Local stocks pared some of their earlier gains toward the session's end, ahead of the US Federal Reserve meeting.

Market kingpin Samsung Electronics lost 0.38 percent to 78,500 won, and No. 2 chipmaker SK hynix retreated 0.85 percent to 116,000 won.

Internet portal operator Naver closed unchanged at 452,000 won, with its rival Kakao increasing 0.34 percent to 148,000 won.

Pharmaceutical giant Samsung Biologics gained 1.57 percent to 908,000 won, and top automaker Hyundai Motor edged up 0.22 percent to 225,000 won. Leading chemical firm LG Chem climbed 2.2 percent to 835,000 won.

The local currency closed at 1,150.1 won to the US dollar, up 4.9 won from the previous session's close. (Yonhap)

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