SEOUL– South Korean stocks finished a tad higher Friday, as investors vetted the U.S. Federal Reserve’s hawkish stance on future rate hikes. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.53 points, or 0.17 percent, to close at 2,700.39 points.
Trading volume was moderate at around 920 million shares worth some 10.1 trillion won (US$8.2 billion), with gainers outnumbering losers 442 to 393.
Foreigners sold stocks worth a net 448 billion won while institutions and retail investors picked up shares worth a combined net of 427 billion won.
The market opened higher, tracking overnight Wall Street gains, but briefly turned to losses as institutions and foreigners began selling off.
Overnight, the U.S. stock market rebounded as investors digested the minutes from the Fed’s March meeting, which hinted at more aggressive monetary tightening than had been originally expected.
The Dow Jones Industrial Average inched up 0.3 percent, and the S&P 500 rose 0.4 percent.
“While underlying concerns about inflation and geopolitical risks persist, the Korean market is likely to move in line with the U.S. market especially ahead of earnings seasons, which will start next week at home and abroad,” Mirae Asset Securities analyst Park Kwang-nam said.
Market bellwether Samsung Electronics shed 0.29 percent to close at a new 52-week low of 67,800 won despite its strong earnings forecast the previous day, and No. 2 chipmaker SK hynix went down 1.32 percent at 112,000 won.
LG Electronics jumped 6.55 percent to close at 122,000 won on surprise earnings guidance. Major battery maker LG Energy Solution inched up 0.69 percent to 439,500 won, and LG Chem also climbed 1.35 percent to 525,000 won.
Internet banking firm Kakao Bank declined 0.22 percent to 46,100 won, and Kakao Pay, fintech arm of internet giant Kakao, rose 0.37 percent to 134,000 won.
The local currency closed at 1,225.10 won against the U.S. dollar, down 5.6 won from the previous session’s close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 8.2 basis points to 2.987 percent, and the return on the benchmark five-year government bond added 7.0 basis points to 3.116 percent.
Source: Yonhap News Agency