(2nd LD) Seoul shares rise for 2nd day on tech gains despite renewed Mideast tensions

Seoul's stock market saw a second consecutive day of gains on Tuesday, buoyed by strong performance in technology shares, even as tensions escalated in the Middle East following renewed airstrikes between the United States and Iran. The Korea Composite Stock Price Index (KOSPI) ended at 6,835.80, marking a 0.23 percent increase, after peaking at 6,835.80 points.

The index started lower, falling 0.52 percent, mirroring overnight declines on Wall Street due to heightened Middle East tensions and concerns over economic uncertainty. Federal Reserve Chair Kevin Warsh's recent remarks at the Jackson Hole Symposium added to the market's apprehension, hinting at a potential interest rate hike in the near future.

Despite these uncertainties, gains in tech stocks managed to offset the overall decline, with government data revealing that South Korea's August exports continued to thrive, driven by robust demand for chips. The trading volume for the day was relatively low, totaling 263.7 million shares, valued at 17.5 trillion won. While foreign, institutional, and retail investors collectively sold off stocks, their net selling pressure managed to temper the market's gains.

Large-scale buyback initiatives announced by major companies like Samsung Electronics and SK hynix were credited with bolstering investor confidence. Notable gains were seen in Samsung Electronics and SK hynix, while energy sector stocks, such as SK Innovation and S-Oil, also performed well due to higher crude oil prices. However, defense-related firms and pharmaceutical companies experienced declines.

The Korean won weakened against the U.S. dollar, finishing the day at 1,370.4 won, down from the previous session's rate. Bond yields, which move inversely to prices, saw a slight uptick, with the yield on three-year Treasurys climbing to 3.878 percent and five-year government bonds rising to 4.106 percent.