Stocks rise for a fourth straight day as Fed signals dovishness

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,747.08 points on Thursday, up 43.56 points, or 1.61 percent, from the previous trading day. [NEWS1]

Stocks extended their winning streak to a fourth straight session Thursday, as the US Federal Reserve chairman signaled a rate hike within market expectations amid soaring global commodity prices. The won rose against the dollar.

The benchmark Kospi added 43.56 points, or 1.61 percent, to close at 2,747.08 points.

Trading volume was moderate at about 607 million shares worth 10.5 trillion won ($8.7 billion), with gainers outnumbering losers 696 to 183.

Institutions bought a net 260 billion won and foreigners purchased 133 billion won, while retail investors offloaded 393 billion won.

Stocks opened higher on the overnight Wall Street stock rallies, after Fed Chair Jerome Powell on Wednesday said rates would likely be hiked by only 25 basis points this month, although he warned of more aggressive rate hikes if inflation continues to build up.

The tech-heavy Nasdaq composite added 1.62 percent and the Dow Jones Industrial Average advanced 1.79 percent.

"The tapering uncertainties had been pressuring the stocks so far, but [the Fed chair's latest comment] seems to have given investors an impression that the Fed's policy tightening may not be so hawkish as previously expected," said Cape Investment & Securities analyst Na Jeong-hwan.

Samsung Electronics advanced 1.67 percent to 72,900 won, with chipmaker SK hynix gaining 3.2 percent to 129,000 won.

Internet portal operator Naver moved up 2.68 percent to 325,500 won, and Kakao inched up 1.36 percent to 96,600 won. Hyundai Motor jumped 4.11 percent to 177,500 won.

Samsung Biologics increased 2.47 percent to 787,000 won, and SK Bioscience climbed 2.41 percent to 149,000 won. Celltrion advanced 7.55 percent 171,000 won.

The local currency closed at 1,204.6 won against the dollar, down 1.5 won from the previous session's close.

The Kosdaq gained 16.87 points, or 1.88 percent, to close at 912.32 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 0.6 basis point to 2.193 percent, and the yield on the benchmark 10-year government bond increased 15.3 basis points to 1.87 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]