South Korean stocks rose for the sixth consecutive session Friday, after softer-than-expected U.S. economic data added to hopes the Federal Reserve will dial back its hawkish interest rate hikes. The local currency gained sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 9.83 points, or 0.38 percent, to close at 2,571.49. Trading volume was high at 878.9 million shares worth 12.9 trillion won (US$9.93 billion) with gainers outnumbering decliners 607 to 261.
All three major U.S. stock indexes rallied Thursday (U.S. time) after the producer prices slowed more than expected in March from a year earlier. Jobless claims rose more than expected last week, showing that the Fed's efforts to rein in inflation are working.
"Producer prices turned out to have slowed from the previous month, raising hopes that the Fed will be able to take action in a more flexible way," said Park Hee-chan, an analyst at Mirae Securities Co.
This photo shows stock indexes and currency data at a Hana Bank branch in central Seoul on April 14, 2023.
Market watchers are increasingly betting that the Fed will begin to signal an end to its aggressive monetary tightening after its next policy meeting in May.
The Fed is widely expected to go ahead with a quarter percentage-point rate hike in the meeting.
Metal and financial stocks drove up the KOSPI.
Steelmaker POSCO Holdings jumped 6.26 percent to 416,000 won and its chemical components-making unit, POSCO Future M, spiked 13.04 percent to 342,500 won, on the back of heightened growth prospects in areas, including secondary battery materials.
Banking firm Hana Financial climbed 3.56 percent to 42,200 won, with its rival KB Financial rising 3.07 percent to 48,650 won.
Tech giant Samsung Electronics closed down 1.51 percent to 65,100 won. Top battery maker LG Energy Solution also fell 0.83 percent to 594,000 won.
No. 1 automaker Hyundai Motor slid 1.41 percent to 196,100 won.
The local currency ended at 1,298.9 won against the U.S. dollar, up 11.5 won from Thursday's close
Source: Yonhap News Agency