(2nd LD) Seoul shares sharply up for 4th day on chip rally

SEOUL, Aug. 13 (Yonhap) -- South Korean stocks surged sharply for the fourth consecutive day on Thursday, driven by a rally in major chipmakers. The Korea Composite Stock Price Index (KOSPI) climbed 3.56 percent, hitting 6,813.34, with the Korean won gaining against the US dollar. The benchmark index climbed 0.65, 0.73, and 3.68 percent over the previous three trading sessions.

Foreign investors and institutions led the buying spree, scooping up shares of prominent chip companies. Trade volume was moderate, with 416 million shares trading hands, worth 34.45 trillion won (US$24.22 billion). However, losers outnumbered gainers 532 to 332.

Overnight, US stocks tied to the artificial intelligence technology sector saw a rise. The S&P 500 edged close to a record high, while the Nasdaq composite advanced. The Dow Jones Industrial Average, on the other hand, saw a slight dip.

Kang Jin-hyeok, an analyst at Shinhan Securities Co., attributed the foreign buying to relief over the US consumer price index for July, which came in line with expectations. Strong earnings reports from AI infrastructure companies also contributed to the positive sentiment. Semiconductor giants Samsung Electronics and SK hynix led the charge, with their stocks soaring 4.89 percent and 5.91 percent, respectively.

SK Square, the parent company of SK hynix, jumped 9.08 percent to 1.12 million won, while Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, surged 12.58 percent to 1.5 million won. Other automaker Hyundai Motor also gained 2.1 percent. The Korean won closed at 1,419.4 won against the US dollar, up 3.7 won from the previous day's close.

Bond prices, which move inversely to yields, also closed higher, with the yield on three-year Treasurys dropping 1 basis point to 3.781 percent, and the return on benchmark five-year government bonds falling 0.9 basis point to 4.016 percent.