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(LEAD) Seoul shares end higher amid woes over fallout from Pelosi's Taiwan visit

All News 16:53 August 03, 2022

(ATTN: ADDS bond yields at bottom, photo)

SEOUL, Aug. 3 (Yonhap) -- Seoul shares ended higher on gains in automakers and battery makers on Wednesday, with investors eyeing the fallout from U.S. House Speaker Nancy Pelosi's trip to Taiwan amid global recession worries. The South Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 21.83 points, or 0.89 percent, to close at 2,461.45 points.

Trading volume was moderate at 463.71 million shares worth 6.6 trillion won (US$5.03 billion), with gainers outnumbering losers 576 to 266.

Foreigners bought a net 474 billion won worth of stocks, offsetting institutions and individuals' combined selling valued at 476 billion won.

Since early this week, China has suspended imports of some Taiwanese products in a warning against Pelosi's visit to Taiwan. China views Taiwan as part of its territory.

"Investors were concerned about escalating conflict (between China and the U.S.) over Pelosi's trip to Taiwan. But there was no such clash, so investors appear to have been relieved a bit," No Dong-kil, an analyst at Shinhan Investment Corp., said.

But U.S.-China tensions over Pelosi's trip remains a factor weighing on investor sentiment already spooked by a possible global slowdown and surging inflation, he said.

In Seoul, large-cap stocks closed mixed.

Top carmaker Hyundai Motor Co. rose 0.3 percent to 197,000 won, national flag carrier Korean Air Lines Co. climbed 0.4 percent to 25,100 won, and leading car battery maker LG Energy Solution gained 4.8 percent to 437,000 won.

Among decliners, market bellwether Samsung Electronics Co. fell 0.7 percent to 61,300 won, and the country's sole aircraft manufacturer Korea Aerospace Industries Co. declined 0.9 percent to 57,700 won.

The local currency was trading at 1,310.30 won against the U.S. dollar, down 5.60 won from the previous session's close.

Bond prices, which inversely to yields, closed lower. The yield on three-year Treasurys rose 5.3 basis points to 3.065 percent and the return on the benchmark five-year government bonds climbed 5.9 basis points to 3.108 percent.

This photo taken on Aug. 3, 2022 shows the dealing room of Hana Bank in central Seoul. (Yonhap)

This photo taken on Aug. 3, 2022 shows the dealing room of Hana Bank in central Seoul. (Yonhap)


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