South Korean shares rose 1 percent on Friday as chip makers such as Samsung Electronics gained amid expectations for a turnaround in flash memory chip prices, while other exporters rebounded from this week's slide.
But continued worries about the US economy following weaker-than-expected housing data and higher oil prices may cap gains in the short term, analysts said, as investors brace for a stack of key US and domestic data due out next week, including US consumer confidence.
Foreign investors were heavy sellers of domestic stocks this week, unloading a net 157 billion won ($163.5 million) in the main exchange on Friday, according to data at 0625 GMT, which brought their net sales for the week to 924 billion won.
Foreigners have now sold a net $10.4 billion since May. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.04 percent to end at 1,329.35. Samsung Electronics Co Ltd rose 1.41 percent to 646,000 won, although shares in the world's biggest maker of memory chips still fell 1.82 percent for the week.
Hynix Semiconductor Inc gained 3.33 percent to 35,650 won, after earlier rising as much as 4.2 percent. Other exporters also ended higher, with LG Electronics Inc gaining 3.28 percent to 63,000 won on speculation the mobile phone maker may win an order to supply phones to Britain's Vodafone Group Plc. Oil refiners gained amid expectations higher oil prices would lift product prices. Third-ranked S-Oil Corp ended up 2 percent to 66,300 won.
Trade volume reached 197.4 million shares worth 2.5 trillion won compared to 192.3 million shares worth 2.3 trillion won on Thursday. Gainers trumped decliners by 512 to 241 with 77 titles ending flat.
Retail investors sold a net 83.7 billion won, but institutional investors bought a net 230 billion won. The September KOSPI 200 futures index rose 1.85 points to 173.85, while the underlying KOSPI 200 spot index gained 1.84 points to 172.92. South Korea's junior and tech heavy Kosdaq market rose 0.84 percent to finish at 556.41.