(ATTN: ADDS additional info in paras 4, 6, bottom; CHANGES photo)
SEOUL, Oct. 16 (Yonhap) -- Seoul stocks rebounded by more than 2 percent Friday to snap their seven-day losing streak on an eased chip rout and bets on the Federal Reserve's rate hikes.
The Korean won was trading higher against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 113.83 points, or 2.05 percent, to 5,668.05 after rising as high as 5,809.94.
Trade volume was light at 286.5 million shares worth 20 trillion won (US$15 billion). Winners far outnumbered losers 757 to 134.
Investors went bargain hunting for large-cap tech shares, particularly the country's top chipmakers, which tumbled over 10 percent the previous session.
Foreigners were net buyers snapping up 343.5 billion won worth of stocks, while retail and institutional investors offloaded a combined net 1.17 trillion won.
During the 2026 IMF-World Bank annual meetings in Bangkok, Fed Chair Kevin Warsh voiced optimism for the U.S. economy and its strength while he refrained from signaling whether there will be a rate hike this month.
Warsh's comments revived appetite for risky assets as a series of recent U.S. inflation data signaled that prices are rising at a faster pace than expected.
Investor sentiment was also lifted by the Fed chair's expression of optimism for artificial intelligence (AI), which he described as "probably the most consequential change to the U.S. and the global economy in my lifetime."
"It is meaningful that the Fed Chair maintained a positive assessment of the AI industry's structural growth, despite concerns over growing credit risks and funding burdens at such companies," Seo Sang-yong, an analyst at Mirae Asset Securities, said.
Comments from Nvidia chief Jensen Huang also helped elevate financial health concerns over the AI industry as well. On Thursday, Huang expressed optimism for its partner cloud company, CoreWeave, saying the firms' financial strength is "improving every day."
Shares of CoreWeave slid over 15 percent Wednesday (U.S. time) after a dramatic spike in its corporate bond yields of near 15 percent triggered investor anxiety over the company's heavy AI-related debt burden.
Financial data is displayed on a screen inside the dealing room of Hana Bank in Seoul after the closing bell on Oct. 16, 2026. (Yonhap)
In Seoul, most market heavyweights closed higher.
Semiconductor giant Samsung Electronics was up 2.62 percent to 215,500 won, while industry rival SK hynix inched up 0.79 percent to 1,272,000 won.
Carmaker Hyundai Motor added 5.58 percent to 312,000 won, defense giant Hanwha Aerospace advanced 7.77 percent to 888,000 won, and bio firm Celltrion climbed 6.53 percent to 194,000 won.
The Korean won was quoted at 1,331.4 won against the U.S. dollar as of 3:30 p.m., up 13.2 won from the previous trading session.
fairydust@yna.co.kr
(END)