SEOUL, July 21 (Yonhap) -- Seoul stocks snapped their two-day losing streak and closed sharply higher Tuesday, as investors went bargain hunting for tech heavyweights. The Korean won closed higher against the U.S. dollar.

The benchmark Korea Composite Stocks Price Index (KOSPI) closed up 231.68 points, or 3.56 percent, at 6,747.95.

The index lost ground in early trading but sharply rebounded around noon, triggering the bourse operator to halt program trading for five minutes.

"Local stocks were boosted by bargain hunting concentrated on semiconductors," said Lee Kyoung-min, an analyst from Daishin Securities.

Despite the sharp drops in Samsung Electronics and SK hynix, global investment banks have maintained a bullish outlook on the memory chip sector, citing its strong fundamentals.

The latest monthly export figure, which marked the highest for any July, further backed such a claim, with outbound shipments of semiconductors growing 180.6 percent as of July 20.

On the Middle East front, Tehran confirmed it received new mediation proposals from Pakistan and Qatar aimed at ending the conflict with the United States, further increasing risk appetite, the analyst added.

Traders work inside the dealing room of Hana Bank in central Seoul on July 21, 2026. (Yonhap)

fairydust@yna.co.kr
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