Seoul stocks end higher for 2nd day on eased uncertainty over BOK rate hike

South Korean stocks finished higher Thursday as investors gained clarity on the Bank of Korea's monetary tightening. The Korean won also gained ground against the US dollar.

The Korea Composite Stock Price Index (KOSPI) added 29.81 points, or 1.22 percent, to close at 2,477.26, keeping the two-day winning streak.

Trading volume was moderate at 410.32 million shares worth 7.06 trillion won ($5.29 billion), with gainers far outpacing decliners 708 to 150.

Institutions and foreign investors, combined, picked up a net 161.41 billion won worth of shares, while retail investors sold off a net 180.15 billion won.

Earlier in the day, the Bank of Korea raised its policy rate by 0.25 percentage point to 2.5 percent to rein in soaring inflation. It was its seventh rate increase since August last year and fourth successive rate hike.

Investors will also be looking for clues as to the US central bank's rate hike plan at the annual meeting in Jackson Hole, Wyoming, slated for Friday (US time), where Federal Reserve Chair Jerome Powell is scheduled to give a speech.

Last month, the Fed raised its key interest rate by 75 basis points for the second straight month. The minutes of its July meeting hinted at continued aggressive monetary tightening to fight high inflation.

"That the BOK raised its policy rate and the exchange rate has stabilized a bit has sent positive signals to the stock market," Park Kwang-nam, an analyst at Mirae Asset Securities, said.

Most big-cap shares ended higher.

Market bellwether Samsung Electronics added 1.19 percent to 59,700 won, and No. 2 chipmaker SK hynix gained 0.97 percent to 94,100 won. Major chemical firm LG Chem also inched up 0.33 percent to 616,000 won, and key battery maker LG Energy Solution went up 1.77 percent to 459,000 won.

Samsung Biologics, the biotech arm of South Korea's Samsung Group, gained 2.05 percent to 845,000 won. Internet portal giant Naver rose 1.24 percent to 244,500 won, and platform operator Kakao added 1.6 percent to 76,100 won.

Samsung SDI shed 0.68 percent to 587,000 won.

The local currency ended at 1,335.20 won against the US dollar, up 6.9 won from the previous session's close. (Yonhap)