Seoul: South Korean stocks closed sharply higher Friday, hitting another record high on strong gains in tech shares, as investor sentiment was lifted by news of a planned summit between the leaders of the United States and China. The Korean won strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased 96.03 points, or 2.5 percent, to close at 3,941.59.
According to Yonhap News Agency, trade volume was moderate at 419 million shares worth 17.6 trillion won (US$12.2 billion), with winners beating losers 474 to 407. Institutions and foreign investors purchased 1.4 trillion won and 581.5 billion won worth of shares, respectively, while retail investors alone offloaded a net 2 trillion won.
U.S. shares rebounded Thursday (local time). The S and P 500 rose 0.6 percent, the tech-heavy Nasdaq composite climbed 0.9 percent, and the Dow Jones Industrial Average added 0.31 percent. In Seoul, the market opened higher as investors welcomed the White House's confirmation that U.S. President Donald Trump will meet his Chinese counterpart, Xi Jinping, next week on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
"Optimism surrounding the APEC summit contributed to the market's gains," said Jeong Da-woon, an analyst at LS Securities, adding that expectations that tariff negotiations and U.S.-related investment issues could be resolved positively increased. Most market heavyweights ended higher, with tech shares leading the gains.
Chip giant Samsung Electronics went up 2.38 percent to 98,800 won, and rival SK hynix jumped 6.58 percent to 510,000 won. Leading battery maker LG Energy Solution shot up 9.94 percent to 492,000 won. Auto shares were mixed, with top carmaker Hyundai Motor inching up 0.2 percent to 252,500 won, while its smaller affiliate Kia edged down 0.09 percent to 114,900 won. Defense giant Hanwha Aerospace closed lower, falling 3.43 percent to 1,013,000 won.
The Korean won was quoted at 1,436.85 won against the U.S. dollar at 3:30 p.m., up 2.75 won from the previous session.