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

South Korean shares surged nearly 2 percent on Thursday, ending a three-day losing streak, as institutional investors purchased major chip shares. The Korea Composite Stock Price Index (KOSPI) climbed 133.31 points, or 1.95 percent, to close at 6,917.35. The index began the day on a weaker note, as investors processed a mix of negative factors, including persistent pressure from elevated U.S. Treasury yields and stronger-than-anticipated oil prices.

Despite these challenges, the index recovered as chip stocks outperformed. Wall Street closed mixed earlier on Thursday, with the Dow Jones Industrial Average slipping 0.86 percent and the S&P 500 declining 0.25 percent. The tech-heavy Nasdaq composite, however, managed a modest gain of 0.24 percent. Trading volume was relatively light, with 259.69 million shares exchanging hands, totaling 16.65 trillion won ($12.25 billion), and outperforming stocks outnumbered underperforming ones 541 to 331.

Foreign and individual investors offloaded a combined net of 1.93 trillion won, while institutions accumulated a net of 334.32 billion won. U.S. inflation data proved milder than expected, lessening concerns about a possible Federal Reserve rate hike. Analyst Lee Kyung-min at Daishin Securities noted that strong Micron Technology earnings and rising South Korean semiconductor exports contributed to investor sentiment improvements.

Seoul's exports skyrocketed 83.5 percent in September, reaching a record $120.9 billion, primarily driven by chip shipments. Tech titans Samsung Electronics and SK hynix led the gains, with Samsung Electronics' shares rising 2.79 percent to 276,000 won, and SK hynix up 3.21 percent to 1.83 million won. SK Square, the parent company of SK hynix, climbed 1.4 percent to 1.15 million won, while electronics component firm Samsung Electro-Mechanics surged 3.17 percent to 1.56 million won.

As of 3:30 p.m., the Korean won was trading at 1,358.4 won against the U.S. dollar, a 5.6 won decline from the previous session's close.