Seoul shares end higher on institutional buying amid AI investment concerns
Seoul shares ended higher on Monday, supported by institutional buying, as investors weighed concerns over whether heavy spending on artificial intelligence (AI) infrastructure would generate sufficient returns.
The Korean won was trading higher against the U.S. dollar. After opening 3.17 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) reversed course to close up 99.96 points, or 1.76 percent, to 5,768.01, after falling as low as 5,488.41, reports Yonhap news agency.
Institutions bought a net 574.66 billion won (US$432 million) worth of shares, while foreign investors and retail investors sold a net 37.87 billion won and 1.09 trillion won, respectively.
Investors also remained cautious ahead of earnings reports due this week from major companies, including Tesla and Meta Platforms, as well as the Nov. 3 U.S. midterm elections, amid continued uncertainty over the outlook for interest rates, analysts said.
"Some investors appear to have bought large-cap stocks in search of bargains following sharp declines in recent weeks, helping the index move into positive territory despite reservations centred on massive spending on AI infrastructure," IBK Securities said.
In Seoul, tech stocks contributed to the gains. Market bellwether Samsung Electronics rose 1.16 percent to 218,000 won, while its chipmaking rival SK hynix climbed 0.39 percent to 1.28 million won.
Top carmaker Hyundai Motor jumped 4.49 percent to 326,000 won, and defence giant Hanwha Aerospace advanced 1.91 percent to 905,000 won. On the other hand, leading shipbuilder HD Hyundai Heavy Industries fell 1.71 percent to 345,500 won, and shipbuilder Hanwha Ocean declined 1.23 percent to 64,200 won.
The Korean won was quoted at 1,330.3 won against the U.S. dollar as of 3:30 p.m., up from 1,331.4 won reached at the end of the previous stock trading session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 2.3 basis points to 3.877, and the return on the benchmark five-year government bonds climbed 2.6 points to 4.014.
