The South Korean stock market closed slightly higher on Friday, achieving the largest weekly increase in a month. The gains in the auto and financial sectors outweighed the decline in chip stocks. The Korea Composite Stock Price Index (KOSPI) closed up 3.32 points, or 0.13%, at 2,575.41 points. The index rose a total of 1.09% this week, marking the largest weekly gain since mid-August and ending a two-week decline. Hyundai Motor Company rose 2.16% after agreeing to research future cooperation with General Motors (GM.N). Kia Motors (000270.KS), a related company, rose 1.41%. The financial sector index rose 2.49%, and the securities sector index rose 2.47%. Samsung Electronics (005930.KS) fell 2.87%, and SK Hynix fell 3.55%, suppressing the overall index's upward momentum.
South Korean regulators announced after the market closed on Thursday that they plan to lift the ban on short selling of stocks in March next year.
"Due to concerns about peak demand, semiconductor stocks performed poorly, but autos and financial stocks rose in sector rotation, keeping the index steady," said Seo Sang-young, an analyst at Future Asset Securities.
Foreign investors sold a net 9.743 billion Korean won ($733 million) of stocks on the KOSPI. The Korean won settled at 1,330.6 against the U.S. dollar on the onshore trading platform, up 0.83% from the previous day's closing price of 1,341.6. In offshore trading, the Korean won was reported at 1,329.9 against the U.S. dollar, up 0.4% from the previous day. The one-month non-deliverable forward (NDF) forex rate was reported at 1,327.3. The three-year government bond futures rose 0.07 points to 105.97 points.
The yield on the most liquid three-year Korean government bond fell by 4.0 basis points to 2.831%, while the benchmark 10-year government bond yield fell by 2.7 basis points to 2.944%.
The South Korean financial market will be closed from Monday to Wednesday for the Mid-Autumn Festival and will resume trading on Thursday.