SEOUL, July 8 (Yonhap) -- South Korean stocks rose for a second consecutive day Friday, as concerns over an economic downturn eased. The local currency lost ground against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) advanced 16.34 points, or 0.7 percent, to close at 2,350.61. Trading volume was moderate at 397 billion shares at 6.89 trillion won (US$5.29 billion), with gainers outpacing decliners 588 to 261.
"Fed hawks, like (U.S. Federal Reserve Gov. Christopher Waller), talked about the July 75 basis point raise, but the market appears to be already digesting it," said Han Ji-young, an analyst at Kiwoom Securities Co.
"It's also notable that the Fed is not taking as its base scenario the possibility of growth slowdown, hurt by the monetary tightening, leading to economic recession," Han said.
Waller said Thursday (U.S. time) the recession fears were overblown, projecting a soft landing for the economy with a 0.75 percentage point interest rate hike in the July policy meeting and possibly raising it at lower rates in the coming months.
All eyes will be on the U.S. jobs report due out Friday (U.S. time), and its June inflation data to be released next week, analysts said.
In Seoul, large-cap auto and tech stocks drove up the KOSPI. Market behemoth Samsung Electronics gained 0.86 percent to 58,700 won, and top battery maker LG Energy Solution jumped 3.88 percent to 388,000 won.
Top automaker Hyundai Motor climbed 1.71 percent to 178,000 won. Leading chemical maker LG Chem also soared 3.05 percent to 540,000 won.
In contrast, foodmakers and telecom companies finished bearish. CJ Cheiljedang slid 0.77 percent to 389,000 won, and major mobile carrier KT fell 0.81 percent to 36,650 won.
The local currency ended at 1,300.40 won against the U.S. dollar, down 0.6 won from Thursday's close.
Bond prices, which inversely to yields, closed lower. The yield on three-year Treasurys gained 5.3 basis points to 3.315 percent and the return on the benchmark five-year government bonds rose 4.8 basis points to 3.345 percent.
Source: Yonhap News Agency