South Korean stocks added 1.56 percent Friday as investors' sentiment was boosted by eased concerns over the United States policy moves and the Chinese economy, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 28.62 points to close at 1,863.32. Trading volume was low at 246 million shares worth 4.34 trillion won (US$3.8 billion) with gainers outpacing losers 631 to 197.
Analysts said investors' sentiment got a boost as concerns that the U.S. will start a tapering of its monetary policy eased following the worse-than-expected on-year economic expansion in the first quarter.
U.S. stocks also closed higher Thursday on improved jobs, consumption and housing data, with the Dow Jones industrial average adding 0.77 percent and tech-laden NASDAQ composite index advancing 0.76 percent.
The abated concerns over China, the biggest trading partner of Asia's fourth-largest economy, also added to the market gain, analysts added.
Earlier this week, Goldman Sachs revised down its growth estimate for the Chinese economy this year to 7.4 percent from 7.8 percent, which earlier dented the investors' sentiment here.
China's central bank, however, responded to the bleak outlook by pledging Tuesday it will add more liquidity to the market if necessary, lending support to Seoul bourse's gain.
"The better-than-expected performances of the eurozone also curbed concerns over the Chinese economy," added Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
Foreigners scooped up more shares than they bought at 443.6 billion won. In contrast, individuals offloaded a net 360.8 billion won, and institutions sold a net 75.3 billion won.
Carmakers gathered ground on the eased weak-yen trend, with Hyundai Motor rising 3.44 percent to 225,000 won and its smaller affiliate Kia Motors adding 1.64 percent to 62,100 won.
Tech blue chips also traded higher, with top chipmaker SK hynix climbing 1.79 percent to 31,200 won and leading flat panel manufacturer LG Display adding 0.37 percent to 27,450 won. Market behemoth Samsung Electronics moved up 0.22 percent to 1,342,000 won.
Builders closed bullish, with Hyundai Engineering & Construction advancing 1.64 percent to 55,900 won and Daelim Industrial rising 3.33 percent to 86,800 won. Daewoo Engineering & Construction added 1.72 percent to 7,090 won.
Brokerage houses also traded higher, with Samsung Securities rising 1.32 percent to 46,100 won and KDB Daewoo Securities adding 0.7 percent to 10,050 won.
The local currency ended at 1,142.00 won against the greenback, up 7.70 won from Thursday's close on the eased concerns over a potential reduction in the U.S. quantitative easing moves, dealers said. (Yonhap News)
