Seoul: Shares end higher with monthly gain of 5%

South Korean shares rose on Friday and posted a monthly gain of more than 5 per cent, as relief rally continued after the US Federal Reserve’s policy meeting raised hopes of slower monetary tightening.

The benchmark Kospi ended up 16.23 points, or 0.67 per cent, at 2,451.50, the highest close since June 14.

The index rose for the fifth straight session, the longest streak since early December 2021, and ended the week 2.44 per cent higher. For the month, it rose 5.1 per cent, the fastest since December 2020.

Global markets have been rattled by worries of runaway inflation and aggressive interest rate hikes hurting economic growth, but comments by Federal Reserve Chair Jerome Powell on Wednesday that he doesn’t believe the United States is in a recession on account of a stable labour market offered some relief.

Stocks erased some of early gains, tracking Chinese peers, as China’s economic policies from a high-level party meeting disappointed investors, said Daishin Securities’ anlayst Lee Kyoung-min.

Among heavyweights, technology giant Samsung Electronics fell 0.81 per cent and peer SK Hynix lost 1.51 per cent, but battery maker LG Energy Solution rose 1.56 per cent.

Internet platform providers Naver and Kakao jumped 4.86 per cent and 3.31 per cent, respectively, leading the gains in the index.

Game publisher Krafton dropped 4.50 per cent after its mobile flagship was blocked in India.

SK Innovation gained 3.02 per cent after saying its battery unit is on target to break even in the fourth quarter thanks to improving market conditions, reversing its previous guidance.

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Foreigners were net buyers of US$260.44 million worth of shares on the main board. REUTERS