(RTTNews) - The South Korean stock market finished sharply higher on Friday after bargain hunting gathered momentum in the afternoon session. After remaining range bound in morning trade, stock saw some strength in the afternoon session and closed firmly in positive territory, extending their gains following Thursday’s 12% jump. The benchmark Korea Composite Stock Price Index or KOSPI closed up 28.3 points or 2.6% at 1,113.06.

In the currency market, the South Korean won fell against the greenback for the first time in three days. The won finished the session at 1,291.0 a dollar compared to Thursday’s close of 1,250.0 a dollar. On Thursday, the won posted its biggest gain against the greenback in a decade following a currency swap deal with the U.S.

U.S. stocks finished higher Thursday following a report that the U.S. gross domestic product fell 0.3%, recording a smaller-than-expected drop, in the third quarter. The Dow Jones rose 2.1% and the tech-heavy Nasdaq advanced 2.5%.

Oil fell for a second day on Friday, dropping nearly 3%, and is set for its biggest monthly loss after weak U.S. GDP data refocused attention on falling demand. Oil was quoted at $64.21 a barrel, down $1.75 or 2.65%, by 3:53 a.m. ET after the contract for December delivery settled down $0.79 at $65.40 on Thursday in U.S. trading.

On the economic front, a central bank report showed that South Korean manufacturers’ confidence dropped to the lowest level in nearly five years in November, as companies expected a global economic downturn to hurt their business. The business survey index for manufacturers’ expectations declined to 65 in November from 78 in the previous month.

Meanwhile, the National Statistical Office said that South Korea’s industrial output grew at a faster pace in September on solid gains in exports of video-audio products and transportation equipment. According to the agency, industrial production expanded 6.1% year-over-year in September compared to a dismal 1.9% advance in August.

Heavy machinery, shipyard, construction, and retail stocks posted strong gains. Leading power generator maker Doosan Heavy Industries soared 14.9%, Hyundai Heavy Industries gained 5.7%, Hyundai Engineering & Construction surged 15.0%, and discount store chain operator Shinsegae advanced 2.9%.

Meanwhile, tech and finance stocks finished lower on profit taking, with LG Electronics tumbling 5.0% and Shinhan Financial Group shedding 5.2%.

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Posted in Categories: Economy, Releases, USA.

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