(2nd LD) Seoul shares rise for 2nd day on tech rally amid rate hike woes

(ATTN: ADDS bond yields at bottom; CHANGES photo)

SEOUL, Nov. 11 (Yonhap) -- Seoul shares ended sharply higher for a second straight session Wednesday, buoyed by a rally in technology stocks amid concerns that hotter-than-expected U.S. inflation could prod the Federal Reserve to pursue an aggressive tightening mode.

The Korean won was trading higher against the U.S. dollar.

After opening 0.56 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 136.23 points, or 2.6 percent, at 5,375.36 after rising as high as 5,377.99.

Trade volume was light at 219 million shares worth 16.3 trillion won (US$12.2 billion), with gainers outnumbering losers 573 to 295.

Foreigners bought a net 655.26 billion won worth of stocks, while institutions and individuals sold a net 481.67 billion won and 715.69 billion won, respectively.

On Tuesday, the index advanced 4.39 percent, buoyed by a rally in U.S. technology stocks and falling oil prices.

Local stocks bucked overnight losses on Wall Street, where the Dow Jones Industrial Average fell 0.3 percent and the tech-heavy Nasdaq composite declined 0.74 percent.

"Trump's comments suggesting a lower likelihood of military action against Iran drove down oil prices, while bargain hunting in artificial intelligence (AI)-related stocks also buoyed the market," Hyundai Motor Securities said in a research note.

U.S. consumer prices rose 0.3 percent in October from a month earlier, exceeding market expectations and fueling concerns that the Fed could pursue a more aggressive monetary tightening policy to contain inflation.

Investors are also turning their attention to Anthropic's planned initial public offering (IPO) next week.

In Seoul, tech and defense stocks led the gains.

Market bellwether Samsung Electronics rose 3.57 percent to 206,000 won, and its chipmaking rival SK hynix climbed 5.36 percent to 1,28 million won.

Korea Aerospace Industries jumped 7.71 percent to 109,000 won, and LIG Defense & Aerospace surged 9.73 percent to 372,000 won.

Among decliners, top carmaker Hyundai Motor fell 0.91 percent to 272,500 won, and Hanjin KAL, parent firm of Korean Air, plunged 14.64 percent to 204,000 won.

The dollar was quoted at 1,333.6 won against the U.S. dollar as of 3:30 p.m., compared with 1,337.5 won from the previous stock session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 9.6 basis points to 3.729, and the return on the benchmark five-year government bonds climbed 9.2 basis points to 3.810.

kyongae.choi@yna.co.kr
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