South Korean stocks hit a record high on Wednesday, with Samsung Electronics leading gains, tracking a rise in US stocks after signs the Federal Reserve's tightening campaign is nearing an end.
Share in Samsung Electronics Co Ltd, the world's top memory chip maker, touched a record high of their own, bolstered by data showing strong global semiconductor sales in November, while retailers such as department store Shinsegae Co Ltd rose after the government's upbeat forecast for the sector.
But the upside was limited as a stronger won put pressure on Hyundai Motor Co, South Korea's top auto maker, and on other exporters, while higher oil prices also dented the outlook for companies sensitive to energy costs.
The benchmark Korea Stock Price Index closed up 0.52 percent at 1,402.11 after hitting a record high of 1,412.15.
"Shares were boosted after US stocks, especially IT titles, jumped after the Fed's minutes wiped out investors' concerns over US interest rate hikes," said Park Kum-yung, fund manager at Mirae Asset Investment Management Co.
The Federal Reserve minutes released on Tuesday from its December policy-setting meeting suggested that US rates were near a peak.
Samsung Electronics jumped 5.11 percent to close at 699,000 won, just off a record high of 700,000 won.
Among other blue chips, Korea Electric Power Corp advanced 2.68 percent to 38,300 won as investors bet the stronger won would help the state-run power provider cut energy importing costs, analysts said.
LG Electronics Inc, the world's fourth-largest mobile phone maker. LG Electronics fell 1.44 percent to 88,700 won. Hyundai Motor dropped 1.44 percent to 95,600 won. Energy cost-sensitive companies such as airlines fell on a rise in oil prices. Korean Air Co, the country's top airline, shed 0.16 percent to 31,550 won.
Kookmin Bank recouped earlier loss to end flat at 75,100 won after falling as low as 74,300 won.
Trade volume reached 526 million shares worth 6.9 trillion won, compared to 541 million shares worth 5.7 trillion won on Tuesday. Decliners slightly outnumbered advancers by 395 to 374 with 54 titles ending flat.
Foreigners bought a net 183.8 billion won worth on the main board and local institutions purchased a net 41.9 billion won. Retail investors sold a net 231 billion won.
The tech-heavy Kosdaq rose 0.73 percent to end at 740.48.
The March KOSPI 200 futures index rose 0.60 point to 180.00, while the underlying KOSPI 200 spot index climbed 1.10 points to 179.91.