(LEAD) Seoul stocks rise for 2nd session on export strength, easing Fed rate concerns

Seoul stocks rose for the second straight day on Friday, climbing nearly 2% higher to finish at 6,687.21 points, according to Yonhap news agency. The Korean won strengthened against the U.S. dollar, while the Korea Composite Stock Price Index (KOSPI) finished up 107.73 points, or 1.64%, from the previous day's close. Trade volume was light at 235.5 million shares worth 17.46 trillion won.

Foreign and institutional investors led the gains, scooping up a combined net 2.15 trillion won, while retail investors offloaded 3.72 trillion won. Rate hike concerns eased after Federal Reserve Governor Christopher Waller hinted at a possible pause in interest rate hikes at the September meeting, citing disinflation trends. The Bank of Korea's data also highlighted South Korea's robust exports, particularly in artificial intelligence (AI), which contributed to a second-largest current account surplus in July, marking the 39th consecutive month of positive balance.

Notable winners included Samsung Electronics, SK hynix, and oil refiners SK Innovation and S-Oil, all buoyed by conflicts between the U.S. and Iran. The decline was led by LG Energy Solutions and KB Financial. The Korean won closed at 1,350.4 won against the U.S. dollar, up 8.9 won from the previous session.