(2nd LD) Seoul stocks end higher ahead of Nvidia earnings

Seoul shares rebounded on Tuesday, recovering from earlier losses, as investors awaited significant corporate earnings announcements this week, including from U.S. chipmaker Nvidia. The Korean won weakened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) finished up 45.78 points, or 0.68 percent, at 6,742.74, following a 3 percent drop the previous day as chipmakers struggled amid rising doubts about the profitability of AI-related investments.

Investors collectively bought shares worth 1 trillion won and 1.17 trillion won, while foreign investors sold shares worth 3.82 trillion won. Overnight, U.S. markets were mixed, with the Dow Jones Industrial Average up 0.26 percent, while the tech-focused Nasdaq Composite fell 0.76 percent. Analysts noted that investors were balancing concerns over growing geopolitical tensions in the Middle East with optimism for upcoming U.S. economic data and earnings reports this week.

Federal Reserve Governor Kevin Warsh was scheduled to speak at the Jackson Hole gathering in Wyoming on Friday, potentially providing insights into the Fed's monetary policy stance amid ongoing inflation. Tech and automobile companies drove the gains in Seoul. Samsung Electronics, the market's benchmark, remained flat at 257,000 won, while chip rival SK hynix increased 0.42 percent to 1.68 million won.

Hyundai Motor and leading shipbuilder HD Hyundai Heavy Industries rose 1.69 percent and 1.98 percent, respectively, to 421,000 won and 464,500 won. Notable decliners included battery manufacturer LG Energy Solution, which dropped 3.45 percent to 349,500 won, and oil refiner SK Innovation, which fell 3.92 percent to 125,000 won. The Korean won closed at 1,386.1 won per U.S. dollar, down 3.7 won from the previous session's close.

Bond prices, which inversely correlate with yields, showed an uptick, with the yield on three-year Treasurys falling 0.6 basis point to 3.830 percent, and the return on benchmark five-year government bonds declining 2.9 basis points to 4.039 percent.