Seoul stocks soar over 2% on eased inflation woes

Seoul stocks experienced a significant surge of over 2 percent on Friday, as inflation concerns were eased. The Korea Composite Stock Price Index (KOSPI) closed at 6,894.23, marking a 2.66 percent increase. Trade volume remained moderate, with 321.35 million shares worth 25.56 trillion won ($18.5 billion) changing hands. However, losers outnumbered winners, with a ratio of 463 to 407.

Analyst Lee Kyoung-min from Daishin Securities attributed the positive market sentiment to the drop in oil prices and the Federal Reserve's decision to raise interest rates for the first time in over three years. This move has led foreign investors, particularly those involved in artificial intelligence (AI), to return to the local market.

Foreign investors, in particular, turned to net buyers, purchasing a net 424.6 billion won, while institutional investors added a net 1.5 trillion won. Retail investors, on the other hand, offloaded a net 3.59 trillion won.

Market heavyweights ended the day mixed. Samsung Electronics rose by 3.37 percent to 261,000 won, while SK hynix increased by 6.42 percent to 1,857,000 won. These gains were driven by optimism surrounding AI memories, following Nvidia's CEO Jensen Huang's comments that chip sales volume will double next year compared to this year's levels.

Conversely, LG Energy Solution saw a slight decline of 0.27 percent to 364,000 won, while KB Financial dropped by 2.4 percent to 174,900 won. Shipbuilder HD Hyundai Heavy Industries also experienced a decline of 2.02 percent to 460,000 won. The Korean won strengthened against the U.S. dollar, reaching 1,383.3 won from the previous session's rate.