(2nd LD) Seoul stocks soar over 2 pct on eased inflation woes

Seoul's stock market surged more than 2% on Friday, as worries over rising inflation eased. The Korea Composite Stock Price Index (KOSPI) closed at 6,894.23, marking a 2.66% increase. The local currency strengthened against the US dollar. The KOSPI index surpassed the impact of macroeconomic concerns, while foreign investors returned to the market, driven by advancements in artificial intelligence (AI).

Lee Kyoung-min, an analyst from Daishin Securities, attributed the market's performance to the recent decline in oil prices and the Federal Reserve's decision to raise interest rates for the first time in over three years. Foreign investors, specifically, turned into net buyers, purchasing a net 424.6 billion won after a week-long selling spree. Institutional investors also contributed by buying a net 1.5 trillion won, while retail investors sold a net 3.59 trillion won.

Notable gains were seen in Samsung Electronics and SK hynix, two leading chip manufacturers, who benefited from optimism surrounding AI memories. Following Nvidia's CEO Jensen Huang's statement that chip sales would double next year compared to the current year, both companies experienced significant increases in stock prices.

In contrast, battery manufacturer LG Energy Solution, along with financial firm KB Financial and shipbuilder HD Hyundai Heavy Industries, experienced slight declines in stock value. The Korean won appreciated against the US dollar, reaching 1,383.3 won per dollar, up from the previous session's rate. Bond prices, which inversely correspond to yields, also showed an improvement, with the yield on three-year Treasuries falling by 2.8 basis points to 4.035%.