Seoul: Seoul stocks advanced by more than 2 percent Friday on eased inflation woes. The local currency rose against the greenback.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 178.82 points, or 2.66 percent, at 6,894.23. Trade volume was moderate at 321.35 million shares worth 25.56 trillion won (US$18.5 billion), with losers outnumbering winners 463 to 407.
"The KOSPI has brushed off macro concerns, while foreigners returned to the local market, powered by artificial intelligence (AI) momentum," explained Lee Kyoung-min, an analyst from Daishin Securities. The recent drop in oil prices and easing concerns over inflation following the Federal Reserve's decision to hike the base rate by a quarter percentage point for the first time in over three years contributed to this positive movement.
Foreign investors turned net buyers after extending their selling spree to a seventh day, Lee added. They purchased a net 424.6 billion won, along with institutional investors who bought a net 1.5 trillion won. Conversely, retail investors offloaded a net 3.59 trillion won.
Market heavyweights concluded the session with mixed results. Samsung Electronics, the top-cap, added 3.37 percent to 261,000 won, while SK hynix surged 6.42 percent to 1,857,000 won. The two chip giants were buoyed by optimism for AI memories, following comments from Nvidia's CEO Jensen Huang about the anticipated doubling of chip sales volume next year.
In contrast, battery maker LG Energy Solution inched down 0.27 percent to 364,000 won, financial firm KB Financial fell 2.4 percent to 174,900 won, and shipbuilder HD Hyundai Heavy Industries declined 2.02 percent to 460,000 won.
The Korean won was quoted at 1,383.3 won against the U.S. dollar as of 3:30 p.m., up 1.1 won from the previous trading session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.8 basis points to 4.035, and the return on the benchmark five-year government bonds declined 3.7 basis points to 4,225.