Seoul shares rebounded from early losses to close up 0.3 percent on Wednesday, helped by LG Electronics turning higher in afternoon trade following its second quarter results. "Views that (LG Elec) results weren't that bad helped relieve pressure over the technology sector's earnings," said Cho Seong-joon, a strategist at NH Investment & Securities.
The Korea Composite Stock Price Index finished up 0.26 percent at 2,174.31 points despite lingering jitters over the deadlocked US debt ceiling deal. KOSPI 200 September futures rose 0.75 points to 283.85 and the KOSPI 200 spot index climbed 0.66 points to 282.70. The junior Kosdaq market finished up 0.42 percent at 538.12. Institutions scooped up 279.9 billion won ($266.2 million) worth of stocks, while foreign investors continued selling.
LG Elec reported a sharp cut in losses in its lagging handset business, driving its shares up 2.6 percent. "The result is better than already lowered market expectations and actually its handset margin improved in the second quarter," said Han Eun-mee, an analyst at HI Investment & Securities.
Automakers outperformed, with the country's top carmaker Hyundai Motor up 2.1 percent. Hyundai's second-quarter results, due out Thursday, are expected to exceed the market consensus, many analysts said. Affiliate Kia Motors gained 1 percent. Crude oil refiners advanced on rising oil prices, which generally translate into higher product pricing and sales.
SK Innovation, the country's top refiner, rose 2 percent and S-Oil Corp, the country's No 3 crude oil refiner, edged up 0.6 percent. Insurers lost ground after heavy rains raised concerns over flood damage. Shares in Hyundai Marine & Fire tumbled 5.1 percent, while LIG Insurance lost 3.6 percent. Torrential rains paralysed some parts of Seoul and neighbouring regions on Wednesday, killing dozens. Advancing stocks outnumbered decliners by 466 to 376.
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