Seoul: South Korean stocks closed mildly higher Friday, extending their win for a second straight session, amid rising hopes for a diplomatic resolution to the conflict between the United States and Iran. The local currency lost ground against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) gained 32.12 points, or 0.41 percent, to close at 7,847.71. On Thursday, the KOSPI spiked more than 8 percent on tech gains. Trading volume was moderate at 431.3 million shares worth 30.5 trillion won (US$20.1 billion), with winners far outnumbering losers 785 to 118.
Overnight, U.S. stocks advanced after Iran said the latest proposal from the U.S. partly bridged the gap between the warring sides, raising hopes that the three-month war may end soon with a peace deal. In Seoul, large-cap shares were trading mixed, while foreigners extended their sell-offs for the 12th consecutive session.
"Expectations for ceasefire negotiations grew following reports that the United States and Iran are preparing a final agreement with Pakistan acting as the mediator," said Lee Kyung-min, an analyst at Daeshin Securities. Lee, however, added that continued foreign selling remained a burden on the local stock market.
Semiconductor heavyweight Samsung Electronics went down 2.34 percent to 292,500 won, following the previous day's sharp gains on a last-minute deal to avert a massive strike. In contrast, SK hynix edged up 0.05 percent to 1,941,000 won per share.
Samsung Electro-Mechanics, the electronic components affiliate of Samsung Electronics, jumped 11.3 percent to 1,340,000 won, after news that it has signed a major artificial intelligence (AI) chip part deal with a technology company in the U.S. AI investment firm SK Square went up 0.51 percent to 1.19 million won, while leading battery maker LG Energy Solution slipped 0.62 percent to 398,500 won.
Auto shares were also among the losers, with giant Hyundai Motor losing 1.65 percent to 655,000 won and its smaller affiliate Kia going down 1.85 percent to 164,800 won. The Korean won was quoted at 1,517.2 won against the U.S. dollar at 3:30 p.m., down 11.1 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.7 basis points to 3.736 percent, while the return on the benchmark five-year government bonds lost 2.2 basis points to 3.963 percent.