South Korean Stocks Rise for Second Session on Export Strength and Easing Fed Concerns

South Korean stocks rose for a second consecutive session on Friday, with the benchmark Korea Composite Stock Price Index (KOSPI) closing up 107.73 points, or 1.64 percent, to 6,687.21. The gain was driven by strong national export figures and reduced concerns regarding U.S. interest rate hikes. The Korean won also rose against the U.S. dollar, quoted at 1,350.4 won as of 3:30 p.m. an increase of 8.9 won from the previous session.

Market analysts attributed the rise in risk appetite to comments from Federal Reserve Governor Christopher Waller, who signaled a potential lean toward keeping rates steady at the September meeting due to signs of disinflation. Additionally, Bank of Korea data showed a robust current account surplus in July, the second largest on record, marking 39 consecutive months of surplus and highlighting strength in artificial intelligence related exports.

Investment activity was led by foreign and institutional investors, who bought a combined net 2.15 trillion won, while retail investors sold 3.72 trillion won. Trade volume reached 235.5 million shares valued at 17.46 trillion won. Among the top market caps, Samsung Electronics rose 2.2 percent and SK hynix added 3.2 percent. Oil refiners also saw gains, with SK Innovation rising 5.73 percent and S-Oil jumping 6.36 percent, amid conflict between the United States and Iran and Brent crude futures rising above 95 dollars per barrel. Conversely, LG Energy Solutions fell 1.92 percent and KB Financial dipped 3.32 percent.

Bond prices closed higher, with the yield on three year Treasurys falling 0.4 basis point to 3.884 percent and the return on benchmark five year government bonds dipping 1.7 basis points to 4.101 percent.