South Korean stocks rebounded Friday after backtracking for two sessions, buoyed by encouraging economic data from the United States and net buying by foreign investors and institutions. The local currency rose against the U.S. dollar.

Starting the day in positive territory, the benchmark Korea Composite Stock Price Index pared some early gains but ended the day at 1,964.84, up 0.35 percent, or 6.80 points, from Thursday’s close.

Trading volume was moderate at 338.78 million shares worth 4.23 trillion won ($3.78 billion), with advancers outstripping losers 422 to 368 with 84 staying pat.

While foreign investors and institutions bought more shares than they sold, retail investors offloaded local stocks.

Market watchers said despite the recent decoupling trend of the South Korean bourse with overseas indices, the overnight gain on Wall Street triggered by solid indicators in the housing, manufacturing and jobs sectors buoyed investor sentiment that has been uncertain in recent days.

They said speculation that the dollar-yen exchange rate may stabilize in the near future is helping to rebuild confidence in the market.

“The market as a whole still seems to be trying to gauge how far stock prices may fall, yet signs of improving economic conditions in the United States seem to be pushing up stock prices,” said Kang Hyun-gie, an analyst at I’M Securities & Investment Co.

Bae Sung-young, a researcher at Hyundai Securities Co., agreed that signs are pointing toward improvement in the global economy, led by the United States. He added that while the eurozone seems to be struggling, indications that policymaker there will implement stimulus programs are helping share prices.

“There are still pitfalls, yet for the time being, the market could start moving up, centered on stocks that can benefit from global economic growth,” he said.

Tech giant Samsung Electronics, the flagship company of Samsung Group and a key beneficiary of worldwide growth, moved up a solid

1.07 percent to 1,223,000 won per share, with the group’s IT unit Samsung SDS edging up 0.50 percent to 400,000 won. Global appliance manufacturer LG Electronics advanced 4.45 percent to 65,700 won.

Memory chip giant SK hynix, on the other hand, fell 1.69 percent to 46,450 won. (Yonhap)