South Korean shares edged up on Friday to their highest close in more than three months, as some exporters such as Hyundai Motor Co gained on data showing stronger-than-expected overseas shipments. The gains among exporters helped offset concerns about the domestic economy, with data also showing higher core inflation, that sent banking shares lower.
South Korea's Kia Motors Corp surged 3.27 percent to 15,800 won, despite reporting lower sales last month, after the auto maker eached a tentative wage deal with its union and resumed full operations. The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.29 percent to end at 1,356.67, marking its highest close since May 19.
The index gained 2.06 percent for the week, as exporters led gainers amid hopes the US economy would avoid a hard landing. But investors appeared less confident about the outlook for the South Korean economy. The KOSPI posted in August its biggest monthly gain since April, cutting its loss for the year to 1.6 percent, amid expectations US interest rates will remain on hold and following a weakening won currency among other factors.
Samsung Electronics Co Ltd rose 0.46 percent to 653,000 won, while Hynix Semiconductor Inc rose 1.9 percent to 37,500 won, its highest close since January. Hyundai Motor rose 1.48 percent to 82,200 won. The auto maker said on Friday its August sales rose 24.6 percent from a year earlier, helped in part by higher exports.
SK Telecom Co rose 2.14 percent to 191,000 won after saying it would buy back and cancel 110 billion won ($114.5 million) worth of shares. Banking shares fell, with Kookmin Bank down 0.39 percent at 77,500 won. Trade volume reached 206.4 million shares worth 2.5 trillion won compared to 279.3 million shares worth 3.3 trillion won on Thursday. Decliners edged out gainers by 374 to 371 with 69 titles ending flat.
Foreign investors sold a net 111.7 billion won ($116.2 million) in shares on the main bourse, while retail investors sold a net 3.4 billion won. Institutional investors bought a net 97.9 billion won. The September KOSPI 200 futures index rose 0.40 point to 176.40, while the underlying KOSPI 200 spot index gained 0.55 point to 175.99. South Korea's junior and tech heavy Kosdaq market rose 0.86 percent to finish at 577.73.