Kospi closes 2% higher to extend winning streak to fifth day

Finance

Kospi closes 2% higher to extend winning streak to fifth day

Published: 16 Aug. 2024, 16:26 Updated: 16 Aug. 2024, 16:40

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,697.23 points on Friday, up 1.99 percent, or 52.73 points, from the previous trading session. The Kosdaq rose 1.22 percent, or 9.50 points, to 786.33. [NEWS1]

Shares ended almost 2 percent higher Friday to extend their winning streak to a fifth day, as a series of U.S. data soothed economic slowdown fears. The local currency gained ground against the U.S. dollar.

The Kospi rose 52.73 points, or 1.99 percent, to close at 2,697.23.

Trade volume was moderate at 375.9 million shares worth 10.8 trillion won ($7.95 billion), with winners slightly outnumbering losers 473 to 412.

Foreigners scooped up a whopping 1.2 trillion won worth of local shares, and institutions bought 217.3 billion won, while individual investors dumped 1.45 trillion won.

Overnight, major U.S. indexes rallied as the latest retail sales data showed that shoppers are still driving the economy.

The Dow Jones Industrial Average rose 1.4 percent, the S&P 500 increased 1.61 percent and the tech-heavy Nasdaq composite soared 2.34 percent.

The U.S. consumer price index for July, released while the Korean stock markets were closed for the Liberation Day holiday Thursday, cemented bets the Federal Reserve will start cutting its rates soon.

Analysts said the Kospi rallied on a stronger appetite for risky assets, which was backed by a slew of U.S. economic data favorable for potential rate cuts by the Fed.

In Seoul, techs and autos led the overall market advance.

Samsung Electronics advanced 3.89 percent to 80,200 won and SK hynix shot up 6.96 percent to 199,700 won.

Hanmi Semiconductor, a chip equipment supplier, surged 7.76 percent to 127,700 won.

Automaker Hyundai Motor soared 5.81 percent to 255,000 won and its affiliate Kia jumped 3.52 percent to 105,900 won.

Trading firm Samsung C&T also gained more than 3 percent to 144,400 won and HD Hyundai Electric went up 8.58 percent to 297,500 won.

But battery shares were weak, with industry leader LG Energy Solution down 0.15 percent to 336,500 won and Samsung SDI down 0.93 percent to 320,500 won.

Chemical producer LG Chem was also down 1.18 percent to 292,500 won.

The local currency had been trading at 1,357.6 won against the U.S. dollar, down 3 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 4.3 basis points to 2.931 percent and the return on the benchmark U.S. 10-year bonds increased 7.5 basis points to 3.911 percent.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]