SEOUL – South Korean stocks rose nearly 2 percent on Friday, marking the fifth consecutive day of gains, driven by positive economic data from the United States which alleviated concerns about a potential economic slowdown. The local currency also appreciated against the U.S. dollar, reflecting renewed investor confidence.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) advanced by 52.73 points, or 1.99 percent, to close at 2,697.23. The day’s trading volume reached 375.9 million shares, totaling 10.8 trillion won (US$7.95 billion), with advancing issues slightly outnumbering declining ones, 473 to 412. Foreign investors were net buyers, purchasing 1.2 trillion won worth of stocks, while institutional investors added 217.3 billion won to their portfolios. However, individual investors sold off 1.45 trillion won in stocks.
The surge in Seoul’s stock market coincided with gains in major U.S. indexes, following favorable retail sales data indicating continued consumer activity in the economy. The Dow Jones Industrial Average increased by 1.4 percent, the S&P 500 by 1.61 percent, and the Nasdaq Composite by 2.34 percent. Additionally, the U.S. consumer price index for July, which was released during the Korean stock market’s closure for the Liberation Day holiday, suggested that the Federal Reserve might soon reduce interest rates, further boosting investor sentiment.
In Seoul, the tech and auto sectors led the market’s overall advance. Samsung Electronics saw its shares increase by 3.89 percent to 80,200 won, while SK hynix’s shares jumped by 6.96 percent to 199,700 won. Hanmi Semiconductor’s stock surged by 7.76 percent to 127,700 won. Hyundai Motor and its affiliate Kia also posted significant gains, with stocks rising 5.81 percent and 3.52 percent, respectively.
However, not all sectors experienced gains. Shares in the battery sector, including industry leader LG Energy Solution, and Samsung SDI, saw declines, along with leading chemical producer LG Chem. The local currency, meanwhile, strengthened to 1,357.6 won against the U.S. dollar, up from the previous session.