(2nd LD) Seoul stocks rise for 4th session on chip gains

SEOUL, Sept. 23 (Yonhap) -- South Korean shares kept their winning streak alive for the fourth consecutive session on Wednesday, as investors snapped up major semiconductor stocks, mirroring the Nasdaq Composite's back-to-back record closings. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 63.01 points, or 1.21 percent, to close the regular trading day at 7,080.92.

The KOSPI had begun the day about 2 percent higher but later pared its gains as foreign and individual investors squared their positions and booked profits.

On Tuesday, U.S. stocks ended mixed, with technology shares driving a 0.45 percent gain in the Nasdaq Composite, marking its second record close. In contrast, the Dow Jones Industrial Average dropped 0.36 percent, while the S&P 500 fell 0.06 percent. Investor sentiment improved due to a surge in artificial intelligence (AI) stocks and hopes for a de-escalation of tensions between the United States and Iran, which helped to reduce global oil prices.

The South Korean market was closed for the Chuseok holiday, leaving investors on standby until Thursday and Friday.

Foreign investors' net selling and institutional outflows limited the index's gains, according to Lee Kyung-min, an analyst at Daishin Securities. Trade volume was relatively light at 217.4 million shares, totaling 20.8 trillion won (US$15.3 billion). The number of decliners outnumbered advancers 546 to 310. Individuals and foreigners collectively sold a net 1.4 trillion won and 51 billion won, while institutions purchased 31.6 billion won.

Market leaders, Samsung Electronics and SK hynix, both semiconductor firms, rose 3.25 percent to 285,500 won and 1.2 percent to 1.86 million won, respectively. Other notable gains included SK Square, SK hynix's parent company, which jumped 5.03 percent to 1.19 million won. The Korean won strengthened against the U.S. dollar, closing at 1,358.4 won per dollar, up 0.2 won from the previous session's close.

Bond prices, which move inversely to yields, edged higher. The yield on three-year Treasurys fell 3.4 basis points to 4.006 percent, and the return on the benchmark five-year government bonds decreased 4.7 basis points to 4.220 percent.