(LEAD) Seoul stocks end higher ahead of Nvidia earnings

Seoul stocks concluded the trading day on an upward trajectory on August 25, 2023, as investors awaited key corporate earnings announcements, notably from leading U.S. chipmaker Nvidia. The Korean won experienced a decline against the U.S. dollar. Starting the session 2.4% lower, the benchmark Korea Composite Stock Price Index (KOSPI) managed to recover, settling 45.78 points, or 0.68%, higher at 6,742.74.

The index had experienced a more than 3% decline the previous day due to chipmaker losses and renewed doubts about the profitability of AI-related investments.

Investors, both individual and institutional, demonstrated net purchases of 1 trillion won ($723 million) and 1.17 trillion won, respectively. Meanwhile, foreign investors opted for net sales of 3.82 trillion won.

Overnight, U.S. stock markets exhibited mixed performance, with the Dow Jones Industrial Average gaining 0.26% and the tech-heavy Nasdaq Composite declining 0.76%. Analysts noted that investors were balancing their concerns over escalating Middle East geopolitical tensions with expectations of forthcoming U.S. economic data and corporate earnings this week.

Federal Reserve Governor Kevin Warsh was set to deliver a speech at the annual Jackson Hole gathering in Wyoming on Friday (U.S. time), potentially providing insights into the Federal Reserve's monetary policy outlook amid ongoing inflation concerns. In Seoul, technology and automotive stocks drove the market gains. Market bellwether Samsung Electronics remained flat at 257,000 won, while its rival chipmaker SK hynix increased by 0.42% to 1.68 million won.

Top carmaker Hyundai Motor surged 1.69% to 421,000 won, and leading shipbuilder HD Hyundai Heavy Industries rose 1.98% to 464,500 won. Decliners included battery manufacturer LG Energy Solution, which slipped 3.45% to 349,500 won, and refiner SK Innovation, which fell 3.92% to 125,000 won. As of 3:30 p.m., the Korean won was quoted at 1,386.1 won against the U.S. dollar, a 3.7 won decrease from the preceding trading session's close.