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SEOUL, July 24 (Xinhua) -- South Korean shares rebounded in three trading days on Tuesday as retail investors made bargain hunting following a private survey that showed China's manufacturing activities expanded in three months.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.49 points, or 0.25 percent, to close at 1,793.93. Trading volume stood at 480.77 million shares worth 4.07 trillion won (3.55 billion U.S. dollars).

The KOSPI fluctuated in a narrow range on Wall Street losses overnight, but the index turned into positive terrain in the afternoon session thanks to positive data related to China's manufacturing activities.

The U.S. stocks plunged for two straight days overnight amid resurfacing worries over Spain. The 10-year Spanish government bond yields spiked to a new euro-era high of 7.5 percent, a level that many analysts fear could shut Spain out of public markets and eventually lead to a full-scale bailout.

Adding to fears, a string of Spanish regional governments expressed intentions to seek financial help from Madrid after Valencia said last Friday that it would need help from the central government.

Market sentiment was improved after the release of China's purchasing managers' index (PMI) by HSBC. The private survey showed that the preliminary PMI rebounded in three months to 49.5 for July, up from 48.2 for June. The result came after two interest-rate cuts by the People's Bank of China (PBOC).

Foreign and institutional investors sold stocks worth 9.6 billion won and 21.3 billion won respectively, but the selling volume reduced compared with the previous sessions. Retail investors took bargain hunting by purchasing a net 29.1 billion won worth of stocks. Program-linked transaction posted net buying worth 70.2 billion won.

Tech and auto shares gained ground. Market bellwether Samsung Electronics rose 0.7 percent to 1,170,000 won, and memory chip giant SK Hynix advanced 2.2 percent to 20,800 won. Top automaker Hyundai Motor gained 1.8 percent to 223,000 won, and its affiliate Kia Motors added 2.4 percent to 76,000 won.

Among large-cap shares, gainers outnumbered losers. Top steelmaker POSCO was up 0.8 percent to 362,500 won, and the world' s No.1 shipbuilder Hyundai Heavy Industries rose 0.5 percent to 219,500 won. The nation's third-largest banking group Shinhan Financial Group inched up 0.3 percent to 34,200 won.

Meanwhile, leading chemical firm LG Chem declined 1.2 percent to 298,500 own, and top life insurer Samsung Life Insurance fell 0. 4 percent to 91,500 won. The nation's biggest crude oil refiner SK Innovation retreated 0.7 percent to 143,000 won.

The local currency finished at 1,146.1 won against the greenback, up 0.5 won from Monday's close.

Bond prices ended lower. The yield on the liquid three-year treasury notes added 0.01 percentage point to 2.83 percent, and the return on the benchmark five-year government bonds gained 0.01 percentage point to 2.92 percent.

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