▲ Financial data is shown on a screen inside the dealing room in Hana Bank in central Seoul on Sept. 18, 2026. (Yonhap)

(ATTN: ADDS bond yields in bottom; CHANGES photo)

SEOUL, Sept. 18 (Yonhap) -- Seoul stocks advanced by more than 2 percent Friday on eased inflation woes. The local currency rose against the greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 178.82 points, or 2.66 percent, at 6,894.23.

Trade volume was moderate at 321.35 million shares worth 25.56 trillion won (US$18.5 billion). Losers outnumbered winners 463 to 407.

"The KOSPI has brushed off macro concerns, while foreigners returned to the local market, powered by artificial intelligence (AI) momentum," Lee Kyoung-min, an analyst from Daishin Securities, said.

The analyst was referring to the recent drop in oil prices and easing concerns over inflation following the Federal Reserve's decision to hike the base rate by a quarter percentage point for the first time in over three years.

Foreign investors, in particular, turned to net buyers after extending their selling binge to a seventh day, Lee added.

They snapped up a net 424.6 billion won, along with institutional investors who purchased a net 1.5 trillion won. On the other hand, retail investors offloaded a net 3.59 trillion won.

Market heavyweights ended mixed.

Top-cap Samsung Electronics added 3.37 percent to 261,000 won, while rival SK hynix jumped 6.42 percent to 1,857,000 won. The two chip giants were buoyed by optimism for AI memories, following comments from Nvidia's CEO Jensen Huang that chip sales volume next year will double from this year's levels.

In contrast, battery maker LG Energy Solution inched down 0.27 percent to 364,000 won, financial firm KB Financial shed 2.4 percent to 174,900 won, and shipbuilder HD Hyundai Heavy Industries shed 2.02 percent to 460,000 won.

The Korean won was quoted at 1,383.3 won against the U.S. dollar as of 3:30 p.m., up 1.1 won from the previous trading session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.8 basis points to 4.035, and the return on the benchmark five-year government bonds declined 3.7 basis points to 4,225.

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