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

Seoul stocks surged by more than 2 percent on Friday, as concerns over inflation began to ease, according to reports from Yonhap news agency. The Korea Composite Stock Price Index (KOSPI), which serves as a benchmark for the local market, closed at 6,894.23 points, marking a 2.66 percent increase. Despite a moderate trading volume of 321.35 million shares valued at 25.56 trillion won, the upward trend was largely driven by foreign investors.

Lee Kyoung-min, an analyst from Daishin Securities, noted that the market's resilience against macro concerns was bolstered by a recent drop in oil prices and the Federal Reserve's decision to raise interest rates by a quarter percentage point for the first time in over three years. Foreign investors, particularly those involved in artificial intelligence (AI) momentum, turned to net buyers, snapping up a net 424.6 billion won, while institutional investors added another 1.5 trillion won.

Retail investors, however, sold a net 3.59 trillion won, causing some stocks to underperform. Samsung Electronics and SK hynix, two major chipmakers, were among the top gainers, with Samsung Electronics rising 3.37 percent to 261,000 won and SK hynix jumping 6.42 percent to 1,857,000 won. The optimism surrounding AI and memory chips appeared to be a major catalyst for these gains.

On the downside, LG Energy Solution, a battery manufacturer, saw a slight decrease of 0.27 percent, while HD Hyundai Heavy Industries and KB Financial also experienced downturns of 2.02 percent and 2.4 percent, respectively. The Korean won strengthened against the U.S. dollar, reaching 1,383.3 won, a 1.1 won increase from the previous trading session.