South Korean stocks ended slightly higher Friday, led by steel shares, as investors took a breather amid concerns over aggressive monetary tightening by major economies and following sessions of great fluctuations in battery shares. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index added 4.51 points, or 0.17 percent, to close at 2,608.32, the second consecutive gains. Trading volume was a bit heavy at 495.38 million shares worth 16.5 trillion won ($12.92 billion), with gainers outpacing losers 635 to 252.

The index opened lower, tracking overnight US losses, and had bobbed in and out of negative terrain before ending with modest gains.

Retail and foreign investors bought a net 4,392.71 billion won and 59.42 billion won worth of shares, respectively, while institutions shed a net 458.49 billion won worth of shares.

"High volatility in the battery sector continued to affect the index, while the overall investor sentiment was weakened by Wall Street losses, snapping a 13-day winning streak for the Dow," said Seo Sang-young, an analyst at Mirae Asset Securities Co.

Concerns remain over interest rate hikes by major economies, as the European Central Bank on Thursday raised interest rates by a quarter of a percentage point to curb inflation.

The move came after the Federal Reserve raised interest rates by 0.25 percentage point Wednesday, and Chair Jerome Powell suggested a further increase at the September meeting depending on data.

Also on Friday, the Bank of Japan announced a decision to conduct its yield curve control policy more flexibly, while keeping its benchmark interest rate unchanged.

On the Seoul bourse, top-cap shares ended mixed.

Market bellwether Samsung Electronics fell 1.53 percent to 70,600 won on profit taking, while smaller rival SK hynix surged 3.23 percent to 128,000 won.

LG Energy Solution inched up 0.37 percent to 542,000 won, but LG Chem sank 1.22 percent to 650,000 won.

Samsung SDI grew 0.15 percent to 663,000 won, and SK Innovation jumped 1.34 percent to 189,500 won after reporting improved yields from battery manufacturing in the second quarter.

Posco shares gathered ground. Posco Holdings jumped 4.21 percent to 619,000 won, and Posco Future M soared 4.94 percent to 510,000 won. Posco International turned up 20.12 percent to 80,000 won.

Carmakers traded mixed. Top automaker Hyundai Motor retreated 0.51 percent to 196,800 won, while its affiliate Kia added 1.32 percent to 84,200 won.

Major bio firm Samsung Biologics declined 0.88 percent to 784,000 won on profit taking, and internet giant Naver went down 0.24 percent to 211,000 won.

The local currency ended at 1,277.0 won against the US dollar, up 0.7 won from the previous session's close. (Yonhap)