Kospi keeps climbing on optimism on Wall Street

The Kospi gained 3.53 points, or 0.13 percent, to close at 2,758.42 as U.S. tech stocks rallied and the FOMC hinted at rate cuts within the year.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,758.42 points on Friday, up 0.13 percent, or 3.53 points, from the previous trading session. [NEWS1]

Shares closed up for the fourth consecutive session Friday as hopes for a rate cut in the United States helped push U.S. stock indexes to record highs. The local currency lost ground against the dollar.

The Kospi gained 3.53 points, or 0.13 percent, to close at 2,758.42.

Trade volume was heavy at 633.1 million shares worth 15.7 trillion won ($11.38 billion), with losers outnumbering gainers 481 to 399.

Foreign investors remained net buyers for a third consecutive session, scooping up a net 727.7 billion won worth of local shares, while institutions and retail investors offloaded 467 billion won and 210 billion won, respectively.

The Kospi had opened a tad higher, tracking overnight gains on Wall Street.

Both the Nasdaq and S&P 500 climbed to new highs for a fourth consecutive session Thursday on a rally by tech shares led by Apple, which unveiled its free artificial intelligence earlier in the week, but was also helped by the outcome of the Federal Open Market Committee (FOMC) meeting that indicated the start of U.S. rate cuts within the year.

"The Kospi neared a new annual high as the U.S. stock market continues to reach new highs," said Lee Kyung-min, an analyst at Daishin Securities. "The latest rally comes as the outcome of the FOMC, as well as the May consumer price index and producer price index, helped ease investor sentiment."

In Seoul, large caps traded mixed.

Samsung Electronics soared 1.27 percent to 79,600 won, but SK hynix shed 0.45 percent to 221,000 won.

LG Energy Solution tumbled 3.86 percent to 349,000 won, while Samsung SDS gained 0.33 percent to 150,800 won.

Hyundai Motor slipped 0.37 percent to 32,600 won, while Kia advanced 0.82 percent to 122,700 won.

The local currency closed at 1,379.30 won against the greenback, up 5.40 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 2 basis points to 3.252 percent, and the return on the benchmark U.S. 10-year government bonds dropped 7.4 basis points to 4.245 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]