South Korea's stocks rebound as institutional investors turn net buyers
- The KOSPI gained 23.85 points, or 0.79%, to 3,059.89 by 0213 GMT, bouncing back from a 0.16% decline on Monday.
South Korean shares rebounded on Tuesday as institutional investors turned net buyers, while worries over a hedge fund default that rattled global banking stocks overnight had only limited impact. The won edged down, while the benchmark bond yield rose.
The KOSPI gained 23.85 points, or 0.79%, to 3,059.89 by 0213 GMT, bouncing back from a 0.16% decline on Monday.
Most heavyweights gained, with chip giants Samsung Electronics and SK Hynix rising 0.25% and 1.14%, respectively, while battery maker LG Chem added 0.75%.
Overnight, Wall Street cut earlier losses driven by the banking sector on fears that issues with defaulting hedge fund Archegos Capital could spread throughout the banking sector.
Meanwhile, the benchmark U.S. 10-year yields rose to a session high of 1.728% as accelerating vaccinations and massive stimulus stoked inflation concerns.
But Federal Reserve Governor Christopher Waller said the Fed was "a long way from raising interest rates at this point," adding that he saw no evidence at this point that U.S. inflation expectations were rising in a worrisome way, or that bond yields or asset prices were prompting concerns about financial instability.
Foreigners were net buyers of 64.8 billion won ($57.16 million) worth of KOSPI shares, Korea Exchange data showed, while institutional investors purchased net 83.8 billion won.
The won was quoted at 1,133.6 per dollar on the onshore settlement platform , 0.17% lower than its previous close at 1,131.7.
In offshore trading, the won was quoted at 1,133.6, while in non-deliverable forward trading its one-month contract was quoted at 1,133.3.
The most liquid 3-year Korean treasury bond yield rose by 0.5 basis point to 1.124%, while the benchmark 10-year yield rose by 3.8 basis point to 2.019%.