South Korean stocks closed 0.22 percent higher Friday as investor sentiment was boosted by better-than-expected U.S. jobs data, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 4.48 points to finish at 2,011.80. Trading volume was low at 275.5 million shares worth 4.05 trillion won (US$3.76 billion) with gainers outpacing losers 472 to 354.
Analysts said Seoul shares gathered ground following an overnight report that the number of new applicants for unemployment benefits in the U.S. came to 305,000 cases last week, lower than the market estimate of 327,000, showing signs of a recovery in its job market.
The U.S. gross domestic product, the broadest measure of economic performance, edged up 2.5 percent in the second quarter of this year from a year earlier, which also added to the investor sentiment.
The local stock market, however, continued to post a limited growth as U.S. President Barack Obama and the Republican Party are at odds over expanding the government's debt ceiling and budget plan for 2014.
Foreigners, meanwhile, purchased more shares than they sold for the 23rd consecutive session at a net 203.6 billion won, marking the longest buying rally since 22 days tallied over the March-April period in 2010.
"The foreign buying trend, however, is anticipated to become weaker down the road as Seoul shares are less perceived as undervalued," said Lim Noh-joong, a researcher at I'M Investment & Securities Co.
Individuals and institutions, on the other hand, offloaded a net 94.9 billion won and 102.7 billion won, respectively.
Shipbuilders closed higher, with Hyundai Heavy Industries adding 2.86 percent to 270,000 won and Daewoo Shipbuilding & Marine Engineering moving up 2.36 percent to 34,650 won. Samsung Heavy Industries fell 2.08 percent to 44,100 won.
Carmakers closed mixed, with Hyundai Motor remaining unchanged at 256,500 won while its smaller affiliate Kia Motors shed 1.05 percent to 65,700 won. Top auto parts maker Hyundai Mobis gained 1.73 percent to 293,500 won.
Meanwhile, mobile carriers traded lower, with No. 1 player SK Telecom falling 0.23 percent to 215,500 won and KT losing 1.51 percent to 35,950 won. LG Uplus, the smallest player, shed 0.83 percent to 11,900 won.
Market behemoth Samsung Electronics shed 0.44 percent to 1,366,000 won, and its smaller local rival LG Electronics moved down 0.83 percent to 71,600 won. Flat panel maker LG Display fell 0.19 percent to 26,750 won.
The local currency ended at 1,073.70 won against the greenback, up 1.40 won from Thursday's close. (Yonhap News)
