South Korean stocks closed higher Wednesday to snap their three-day fall, as investors moved to bag bargain shares amid hopes the US administration may walk back its tariffs on Canadian and Mexican imports. The Korean currency gained ground against the US dollar.

The benchmark Korea Composite Stock Price Index climbed 29.21 points, or 1.16 percent, to close at 2,558.13.

Trade volume was moderate at 562.8 million shares worth 12.8 trillion won ($8.8 billion), with winners far outnumbering losers 711 to 180.

Overnight, major US shares sank after the country's 25 percent tariffs on goods from Mexico and Canada took effect as planned, sparking fears of a global trade war.

The S&P 500 dropped 1.22 percent, and the Dow Jones Industrial Average declined 1.55 percent, while the tech-heavy Nasdaq lost 0.35 percent.

But after Wall Street closed, investor sentiment improved as US Secretary of Commerce Howard Lutnick told the media that President Donald Trump is still open to negotiations on tariffs on Mexican and Canadian goods.

Experts said Lutnick's remarks soothed market anxiety, helping investors pick up bargain shares in the Kospi.

Retail investors and institutions purchased local shares worth 92.7 billion won and 48 billion won, respectively, while foreigners unloaded 224.7 billion won.

In Seoul, tech behemoth Samsung Electronics lost 0.92 percent to 54,000 won, while its chipmaking rival SK hynix jumped 3.76 percent to 193,100 won.

Top automaker Hyundai Motor soared 2.31 percent to 194,700 won, and its sister Kia surged 2.79 percent to 95,900 won.

Bio giant Samsung Biologics climbed 2.05 percent to 1.15 million won, and steel giant Posco Holdings advanced 3.17 percent to 276,500 won.

Major shipper HMM shot up 4.12 percent to 21,500 won.

But leading defense firm Hanwha Aerospace lost 0.86 percent, and major shipbuilder Hanwha Ocean plummeted 5.41 percent following a rally the previous day.

Financial firms KB Financial and Shinhan Financial fell 1.67 percent and 3.25 percent, respectively.

The local currency was trading at 1,454.5 won against the dollar at 3:30 p.m., up 7.3 won from the previous session. (Yonhap)


herald@heraldcorp.com