South Korean shares rose on Tuesday to a near two-week high as investors looked beyond the imminent outcome of the US presidential election to bet on local blue chips. The Korea Composite Stock Price Index (KOSPI) rose 1.1 percent to close at 1,928.17 points, increasing gains in the late session as local institutional investors purchased a net 171 billion won ($156.7 million) worth of shares.
"The morning's cautious investor sentiment before the US election made way for purchases by pension funds and equity fund managers in the afternoon as they snapped up blue chip shares," said Kim Soon-young, an analyst at IBK Securities.
Shares in Hyundai Motor and affiliate Kia Motors rose 4.3 percent and 1.6 percent, respectively, after plunging nearly 7 percent on Monday after the automakers admitted they have overstated the fuel economy of vehicles sold in the United States and Canada.
Companies in Hyundai's supply chain also saw steep gains, with shares in Hyundai Mobis rising 3.3 percent and Halla Climate rallying 5.6 percent. Large-cap shares mostly rose, with tech heavyweight Samsung Electronics reversing the morning's losses to close up 0.6 percent.
State-run utility Korea Electric Power Corp (KEPCO) slumped 2.1 percent after two nuclear power reactors run by a KEPCO subsidiary were shut down for nearly two months on Monday to replace parts provided with forged certificates. Gainers outnumbered decliners 496 to 335.
The KOSPI 200 benchmark of core stocks closed up 1.1 percent, while the junior KOSDAQ edged 0.5 percent higher.
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