Seoul, Sep 4: South Korean stocks moved higher on Friday as investors returned to riskier assets following reassuring signals on US monetary policy. Gains in major technology companies also helped lift the overall market.
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The KOSPI rose 81.74 points, or 1.24 per cent, to 6,661.22 by 11:20 a.m., extending the positive mood across the Seoul market.
Investor sentiment improved after US Federal Reserve Governor Christopher Waller adopted a cautious tone on the possibility of further interest-rate increases. The remarks helped ease worries about prolonged monetary tightening and encouraged investors to increase their exposure to equities.
South Korea’s economic picture also offered support. Bank of Korea data showed that the country’s current account remained in surplus in July, helped by strong exports benefiting from continued global demand for artificial intelligence-related products. The surplus has now continued for 39 straight months.
Technology stocks led the advance. Samsung Electronics gained 1.8 per cent, while SK hynix climbed 2.57 per cent, reflecting continued investor interest in the semiconductor sector.
The gains were not broad-based, however. Hyundai Motor slipped 0.26 per cent, while LG Energy Solution declined 1.64 per cent. Financial stocks also remained under pressure, with KB Financial falling 2.53 per cent.
The South Korean won was trading at 1,358.1 per US dollar, marginally weaker than the previous session’s close.
The combination of stronger export prospects, renewed interest in technology shares and reduced concerns over aggressive US rate hikes provided a favourable backdrop for Seoul equities in Friday’s morning trade.
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