Seoul shares extend winning streak to 5th day on eased US recession fears

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

The benchmark Korea Composite Stock Price Index (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 US 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 US 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 stronger appetite for risky assets, which was backed by a slew of US economic data favorable for potential rate cuts by the Fed.

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

Tech behemoth Samsung Electronics advanced 3.89 percent to 80,200 won, and its chipmaking rival SK hynix shot up 6.96 percent to 199,700 won.

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

Top automaker Hyundai Motor soared 5.81 percent to 255,000 won, and its smaller 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.

Leading 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 US dollar, up 3 won from the previous session's close. (Yonhap)