Kospi closes up on U.S. job data conducive to Fed rate cut

The Kospi rose 15.49 points, or 0.57 percent, to close at 2,727.63 as a rise in U.S. unemployment claims point to cooling inflation.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,727.63 points on Friday, up 0.57 percent, or 15.49 points, from the previous trading session. [YONHAP]

Shares ended higher on Friday after the latest U.S. job data supported the case for rate cuts by the Federal Reserve this year. The won rose against dollar.

The Kospi rose 15.49 points, or 0.57 percent, to close at 2,727.63. The main index has risen 1.9 percent this week.

Trading volume was moderate at 568.36 million shares worth 11.07 trillion won ($8.09 billion), with gainers outpacing losers 489 to 365.

The number of U.S. unemployment claims jumped last week to the highest level in more than eight months, renewing hopes for the Federal Reserve's rate cuts this year with the indication that wage-driven inflation may cool.

Overnight, the Dow Jones Industrial Average increased 0.9 percent to 39,387.76 points, and the tech-heavy Nasdaq gained 0.3 percent to 16,346.26.

Institutions and foreigners bought a combined 502.48 billion won worth of stocks, offsetting individuals' stock selling valued at 486.89 billion won.

In Seoul, auto and airline stocks led gains.

Hyundai Motor rose 1.9 percent to 241,500 won, Hyundai Mobis climbed 0.4 percent to 227,000 won and Korean Air gained 0.5 percent to 22,000 won.

Posco was up 0.8 percent to 401,000 won.

Among decliners, Samsung Electronics fell 0.6 percent to 79,200 won, Kakao shed 1.7 percent to 47,800 won and Samsung SDI was down 0.4 percent to 429,000 won.

Naver rose 0.16 percent to 188,600 won. KT also inched up 0.42 percent to 35,800 won.

SK jumped up 2.19 percent to 163,500 won and mobile carrier SK Telecom also increased 1.16 percent to 52,400 won.

Shipbuilder HD Korea Shipbuilding & Offshore Engineering rose 0.31 percent to 129,900 won, while Samsung Heavy Industries and Hanwha Ocean rose 0.61 percent to 9,890 won and decreased 2.76 percent to 31,650 won, respectively.

Game publisher Krafton fell 1.71 percent to 259,000 won.

The local currency closed at 1,368.10 won against the greenback, down 2 won from the previous session's close.

The Kosdaq lost 5.99 points, or 0.69 percent, to close at 864.16.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1 basis points to 3.442 percent, and the return on benchmark U.S. 10-year government bonds dropped 4.1 basis points to 4.456 percent.

BY CHOI HAE-JIN, YONHAP [choi.haejin@joongang.co.kr]