South Korean shares recovered on Friday from a sell-off and headed back towards recent record highs, after US markets proved unfazed by China's interest rate outlook, comforting investors who had feared far worse.
Transportation stocks such as Korean Air Co rose after oil prices dropped, while Samsung Electro-Mechanics Co rose after its consolidated operating profit beat estimates. But LG Electronics Inc lost as much as 3.5 percent as it failed to provide clear direction for its struggling plasma display operation after announcing a worse-than-expected quarterly loss on Thursday.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.28 percent to end at 1,533.08 points, not too far off a record 1,538.89 hit just on Tuesday. The Seoul index had dropped 1.4 percent on Thursday - its worst one-day percentage fall since March 14 - ahead of China's announcement of its economic data, as investors had speculated strong numbers would mean interest rate increases down the road.
China did go on to report to report a blistering pace of economic growth and higher consumer price inflation, but the Dow Jones industrial average responded by ending on Thursday at its second consecutive record high close.
Despite pausing in a record-setting rally on Thursday, Seoul shares rose 0.81 percent for the week, their seventh straight weekly gain, on the back of strong buying by foreign investors, who are returning to markets they sold heavily last year.
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