South Korean stock markets extend gains led by Samsung

Seoul, Aug 7 (Yonhap) Seoul shares extended gains on Wednesday, led by Samsung Electronics, despite concerns over lingering market jitters two days after massive selloffs due to fears of a US recession.

The benchmark Korea Composite Stock Price Index (KOSPI) added 61.04 points, or 2.42 percent, to 2,583.19 as of 11.20 am (local time).

The main index ended 3.3 per cent higher on Tuesday after plunging nearly 9 per cent a day earlier due to massive selloffs amid concerns over a recession in the United States, reports Yonhap news agency.

Overnight, the Dow Jones Industrial Average rose 0.76 per cent to 38,997.66, and the tech-heavy Nasdaq Composite climbed 1.03 per cent to 16,366.85.

Individuals bought a net 237.46 billion won ($173 million) worth of stocks, offsetting institutions and foreigners' stock selling valued at 258.68 billion won. In Seoul, most large-cap stocks advanced.

Market bellwether Samsung Electronics jumped 4.3 per cent, No 2 chipmaker SK hynix climbed 3.1 per cent, top carmaker Hyundai Motor gained 1.7 per cent, and national flag carrier Korean Air was up 20,400 won.

Among decliners, leading battery maker LG Energy Solution Ltd. fell 0.5 per cent, leading auto parts maker Hyundai Mobis declined 0.2 per cent, and cosmetics firm Amorepacific plunged 24 percent after posting a 30 per cent on-year slump in operating profit in the second quarter due to weak sales in China.

The local currency was trading at 1,376.40 won against the US dollar, down 0.8 won from the previous session.

According to experts, it appears that the US recession fears are a bit premature and overdone and investors need not to panic.

According to global brokerages, the Indian benchmark indices remain more resilient amid the US economic slowdown.