South Korean stocks jumped more than 1.5 percent to hit a more than one-month high Friday as investor sentiment was boosted by the latest U.S. inflation data that will probably tame the Fed's hawkish view on interest rates and better-than-expected Chinese economic data. The local currency went down against the U.S. greenback.
The benchmark Korea Composite Stock Price Index gained 28.39 points, or 1.1 percent, to finish at 2,601.28, the highest since Aug. 10, when the index finished at 2,601.56.
Trading volume was moderate at 432.6 million shares worth 11.7 trillion won (US$8.8 billion), with winners sharply outnumbering losers 643 to 237.
Foreigners and institutions bought 46.6 billion won and 1.07 trillion won worth of stocks, respectively, offsetting 1.12 trillion won worth of sell-offs by retail investors.
Overnight, all three major U.S. stock indexes rallied as economic data, including retail sales and producer prices, fueled expectations of a pause in the Fed's rate hike march.
Also, the U.S. consumer price index rose 3.7 percent in August from a year earlier due to high-flying oil prices, but core inflation, which strips out volatile food and energy prices, slowed to an annual 4.3 percent.
The stronger-than-expected Chinese economic data also buoyed investors' sentiment.
Earlier in the day, Chinese government data showed the country's retail sales and industrial output grew 4.6 percent and 4.5 percent, respectively, on-year in August, beating market expectations.
"Big-cap stocks were strong as foreigners expanded their futures purchases and China's economic data stoked hopes for economic recovery," analysts at Mirae Asset Securities said.
Most shares gained ground across the board in Seoul.
Samsung Electronics, the No. 1 memory chipmaker in the world, expanded 0.42 percent to 72,000 won, and its rival SK hynix inched up 0.16 percent to 122,400 won.
Steel giant POSCO Holdings shot up 5.61 percent to 31,000 won, its chemical materials making unit POSCO Future M rose 1.74 percent to 408,500 won and its energy trading unit POSCO International jumped 3.38 percent 79,600 won.
Leading chemical producer LG Chem also soared 3.62 percent to 573,000 won and home appliance maker LG Electronics gained 2.97 percent to 107,400 won.
Automakers also ended in positive terrain, with Hyundai Motor adding 0.79 percent to 192,200 won and its affiliate Kia rising 1.14 percent to 80,100 won.
The financial sector was strong on expectations of stock dividends.
KB Financial Group jumped 2.14 percent to 57,300 won, Shinhan Financial Group advanced 3.68 percent to 38,000 won and Hana Financial Group shot up 4.44 percent to 43,500 won.
IT stocks were also bullish, with internet portal operator Naver gaining 1.77 percent to 229,500 won and Kakao, the operator of a popular mobile messenger, adding 1.14 percent to 48,850 won.
Battery shares were mixed.
Industry leader LG Energy Solution rose 1.18 percent to 514,000 won, but its smaller rival Samsung SDI lost 0.51 percent to 581,000 won.
The Korean won ended at 1,325.90 won against the U.S. dollar, down 0.2 won from Thursday's
Source: Yonhap News Agency