(2nd LD) Seoul stocks rise nearly 2 pct to end 3-day losing streak on chip gains

South Korean stocks surged nearly 2% on Thursday, ending a three-day losing streak, as institutional investors boosted major chip shares. The Korea Composite Stock Price Index (KOSPI) climbed 1.95% to close at 6,917.35 points. The benchmark index initially opened lower amid negative factors like persistently high U.S. Treasury yields, but recouped losses as chip stocks rallied.

Wall Street finished mixed, with the Dow Jones down 0.86% and the S&P 500 falling 0.25%. The tech-focused Nasdaq composite edged up 0.24%. Trade activity was light, with 259.69 million shares worth 16.65 trillion won exchanged, and advances outpacing declines 541 to 331. Foreign and individual investors sold a combined 1.93 trillion won, while institutions bought 334.32 billion won.

U.S. inflation data proved weaker than anticipated, easing Fed tightening fears. Micron Technology's strong earnings aligned with a rise in South Korea's semiconductor exports, soaring 83.5% to $120.9 billion in September. Samsung Electronics and chip leader SK hynix both posted gains, with SK Square and Samsung Electro-Mechanics also climbing.

The Korean won weakened to 1,358.4 per U.S. dollar, down 5.6 won from the previous session. Bond yields fell, with three-year Treasurys down 0.1 basis point to 4.010% and five-year bonds slipping 0.3 basis point to 4.200%.