Seoul shares open over 3 pct higher as U.S. bond yields retreat

SEOUL, Aug. 20 (Yonhap) -- The Korean stock market saw a strong opening on Thursday, mirroring gains on Wall Street. The Korea Composite Stock Price Index (KOSPI) surged 209.17 points, or 3.23 percent, to reach 6,680.34 at the market's opening bell. This marked a sharp contrast to the previous day's significant drop of nearly 6 percent, driven by concerns over rising bond yields.

Earlier, major U.S. stock indexes had closed higher after Treasury yields retreated following the Treasury Department's announcement of a substantial increase in debt buybacks. The yield on the 30-year Treasury bond, which had surged to its highest level since 2007, saw a decline on Wednesday. Alongside, the 10-year Treasury yield also dropped.

The Dow Jones Industrial Average rose by 0.22 percent, and the S&P 500 added 0.21 percent. The tech-focused Nasdaq Composite Index also gained 0.16 percent. Furthermore, chipmaker SK hynix is expected to benefit from its plan to repurchase 40 trillion won (approximately US$28.7 billion) worth of shares, aiming to return value to shareholders.