South Korean stocks rise on strong exports and easing US rate hike concerns

South Korean stocks rose for a second consecutive session Friday to finish nearly 2 percent higher, as the country's strong export figures and easing concerns over US interest rate hikes fueled risk appetite. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index closed up 107.73 points, or 1.64 percent, to 6,687.21, following a 0.26 percent gain the previous day.

Trade volume was light at 235.5 million shares worth 17.46 trillion won ($12.9 billion). Winners outnumbered losers 546 to 309.

The index was lifted by foreign and institutional investors, who scooped up a combined net 2.15 trillion won. Retail investors offloaded 3.72 trillion won.

"Rate hike concerns eased following comments from Federal Reserve Gov. Christopher Waller, while risks stemming from the Middle East and the yen carry trade persist," Lee Kyoung-min, an analyst from Daishin Securities, said.

On Thursday, Gov. Waller signaled he could lean toward keeping rates steady at the September Fed meeting, saying recent trends "suggest we are finally seeing some signs of disinflation."

The Bank of Korea's data reaffirmed South Korea's robust exports related to artificial intelligence, as the country posted its second-largest current account surplus in July, marking the 39th consecutive month for the balance to stay in the black.

Market top-caps closed mixed, with semiconductors and oil refiners among the winners.

Samsung Electronics rose 2.2 percent to 255,500 won, while its rival SK hynix added 3.2 percent to 1,647,000 won.

Refiner SK Innovation shot up 5.73 percent to 138,300 won, and S-Oil jumped 6.36 percent to 157,300 won amid continued conflict between the United States and Iran.

Brent crude futures, the international oil benchmark, rose above $95 per barrel as of Thursday, while US Vice President JD Vance ruled out any negotiations with Iran as long as Tehran continues to target commercial shipping.

Among the decliners were battery maker LG Energy Solutions, which fell 1.92 percent to 358,500 won, and financial firm KB Financial, which dipped 3.32 percent to 172,000 won.

The Korean won was quoted at 1,350.4 won against the US dollar as of 3:30 p.m., up 8.9 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.4 basis point to 3.884 percent, and the return on the benchmark five-year government bonds dipped 1.7 basis points to 4.101 percent.