Seoul shares hit fresh record high on hopes for US-China trade deal

This photo shows a dealing room at Hana Bank in central Seoul, Monday. Yonhap

Korean stocks closed at a fresh record high for the fourth consecutive session Monday, buoyed by optimism over easing trade tensions between the United States and China. The Korean won was trading higher against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 65.8 points, or 1.76 percent, to close at 3,814.69, following record rallies last week.

Trade volume was moderate at 404.82 million shares worth 14.1 trillion won ($9.9 billion). Gainers outnumbered decliners by 595 to 285.

Institutional investors were net buyers, purchasing a total of 642.8 billion won worth of shares. In contrast, foreign investors sold a net 250.8 billion won, and individual investors offloaded 408.4 billion won.

Investor sentiment was lifted after U.S. President Donald Trump confirmed Friday that he agreed with his Chinese counterpart, Xi Jinping, to restart trade negotiations "as soon as possible," easing market jitters over the prolonged trade dispute between the world's two largest economies.

"The KOSPI is riding the broader rebound in Asian markets amid easing U.S.-China trade tensions and reduced credit risk," Lee Jae-won, an analyst at Shinhan Securities, said.

The market was further supported by hopes for Seoul's $350 billion trade deal with Washington. A senior presidential official said Sunday that "substantive" progress had been made on most key issues during recent follow-up tariff negotiations with the U.S.

Most index heavyweights closed higher, with techs and autos leading the market advance.

Market heavyweight Samsung Electronics inched up 0.2 percent to 98,100 won, rising for the third consecutive session, and rival SK hynix gained 4.3 percent to 485,000 won, also extending its winning streak to a third day.

Top carmaker Hyundai Motor rose 2.06 percent to 248,000 won, and its smaller affiliate Kia climbed 2.14 percent to 114,500 won.

Defense giant Hanwha Aerospace increased 4.5 percent to close at 953,000 won.

In contrast, leading battery maker LG Energy Solution went down 0.35 percent to 432,500 won.

The Korean won had been quoted at 1,420.15 won against the U.S. dollar as of 3:30 p.m., up 1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys increased 1.4 basis points to 2.569 percent, and the return on the benchmark five-year government bonds went up 2.1 basis points to 2.687 percent.