(LEAD) Seoul stocks rebound over 2 pct on bargain hunting

Seoul stocks experienced a rebound, closing over 2 percent higher on Monday as bargain hunters targeted tech giants, despite worries about artificial intelligence (AI) spending. The Korean won weakened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 128.34 points, or 2.24 percent, to 5,859.08 following a high of 5,910.83, after peaking at that level on Friday.

Intel's weaker-than-expected earnings for the fourth quarter caused a 28 percent drop in its shares on Wall Street. However, investors shifted their focus to the strong fundamentals of the local semiconductor sector. Analyst Lee Kyoung-min from Daishin Securities noted that the KOSPI is at a historic discount, suggesting a potential rebound driven by robust earnings.

South Korean exports surged by over 90 percent from the previous year, driven by strong global demand for chips, with shipments increasing 259 percent year-over-year. Market leaders Samsung Electronics and SK hynix saw their shares rise by 1.78 percent and 3.81 percent, respectively. Meanwhile, KB Financial and battery maker Samsung SDI declined by 1.35 percent and 0.92 percent.

The local currency closed at 1,343.8 won against the greenback, down 9.5 won from the previous session's close.