Seoul:<Text>
South Korean stocks closed higher for the second consecutive day on Friday as investors seized the opportunity to buy blue chip shares at bargain prices amid growing uncertainties ahead of significant global events. The Korean won also appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) advanced by 26.99 points, or 0.86 percent, finishing at 3,168.73. Despite the slim trade volume of 233.9 million shares valued at 8.21 trillion won (US$5.89 billion), the market saw more winners than losers, with 461 shares rising compared to 410 that declined.
Institutional and foreign investors were net buyers, acquiring local shares worth 159.1 billion won and 180.6 billion won, respectively. In contrast, retail investors sold off a net 458.5 billion won worth of shares. The index initially surged by over 1 percent, driven by robust institutional and foreign buying, but later trimmed some gains amid volatile trading sessions.
U.S. stock markets experienced declines overnight as investors awaited insights from U.S. Federal Reserve Chair Jerome Powell regarding a potential rate cut in September. Lee Kyung-min, an analyst at Daishin Securities, noted that the KOSPI is gaining upward momentum ahead of key global events, including Powell's forthcoming speech at the Jackson Hole symposium. Optimism surrounding the upcoming South Korea-U.S. summit is also contributing to the KOSPI's rebound, Lee added.
In Seoul, major large-cap shares saw a rise, particularly in the chip and defense sectors. Chip industry leader Samsung Electronics increased by 1.13 percent to 71,400 won, while competitor SK hynix climbed 2.45 percent to 251,000 won, breaking a five-day losing streak. However, LG Energy Solution, a leading battery manufacturer, saw its shares drop by 1.34 percent to 367,500 won.
Defense and shipbuilding shares strengthened in anticipation of Presi dent Lee Jae Myung's visit to the United States next week. Hanwha Aerospace, a defense powerhouse, surged 6.83 percent to 891,000 won, continuing its two-day winning streak. Smaller defense player Hyundai Rotem saw a 4.14 percent increase to 181,000 won, while leading shipbuilder HD Hyundai Heavy Industries gained 2.33 percent to 483,000 won.
The local currency stood at 1,393.65 won against the U.S. dollar at 3:30 p.m., marking an increase of 4.75 won from the previous session. Meanwhile, bond prices fell, causing yields to rise. The yield on three-year Treasurys increased by 1.8 basis points to 2.456 percent, and the yield on benchmark five-year government bonds rose by 1.9 basis points to 2.624 percent.