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

Seoul stocks surged over 2% on Monday as bargain hunters flocked to tech giants, despite growing concerns about artificial intelligence spending. The Korea Composite Stock Price Index (KOSPI) finished the day at 5,859.08, up 2.24% from the previous close. The benchmark index had plummeted more than 3% on Friday.

Trade activity was relatively low, with 186.4 million shares exchanged worth 14.9 trillion won. There were 651 winners for every 229 losers. Foreign investors and retail traders were net sellers, offloading a combined 1.72 trillion won, while institutional investors were net buyers, snapping up 1.23 trillion won.

Analyst Lee Kyoung-min from Daishin Securities attributed the rebound to investors reevaluating disappointing quarterly earnings from Intel and focusing on the strong fundamentals of South Korea's semiconductor sector. Lee noted that the KOSPI is currently at a historic discount, suggesting the index could rebound further with robust earnings.

South Korea's October exports surged over 90% from a year earlier, driven by robust global demand for chips. Intel shares dropped over 28% on Wall Street after the company reported weaker-than-expected sales guidance for the fourth quarter, citing sluggish PC market growth. In Seoul, semiconductor, shipbuilding, and defense shares led the gains.

Samsung Electronics rose 1.78% to 229,000 won, while SK hynix increased 3.81% to 1,472,000 won. Major shipper Hanwha Ocean jumped 9.8% to 54,900 won, following Hanwha Aerospace's announcement of becoming the first South Korean firm to deliver a medium landing ship to the U.S. Navy.

In contrast, KB Financial fell 1.35% to 153,400 won, and battery maker Samsung SDI declined 0.92% to 538,000 won. The won weakened against the U.S. dollar, closing at 1,343.8 won, down 9.5 won from the prior session. Bond prices, which inversely correlate with yields, fell, with the yield on three-year Treasurys rising 2.5 basis points to 3.740% and the return on five-year government bonds adding 2.7 basis points to 3.892%.