Stocks rise for a ninth session on interest rate hopes

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,399.86 points on Monday, up 13.77 points, or 0.58 percent, from the previous trading day. [YONHAP]

Stocks closed 0.58 percent higher Monday, extending their rally to a ninth session, as eased U.S. inflation outlook boosted investor appetite for risky assets ahead of the earnings season. The local currency rose against the dollar.

The Kospi advanced 13.77 points to close at 2,399.86. Trading volume was moderate at 509.6 million shares worth 6.46 trillion won ($5.23 billion), with gainers outpacing decliners 499 to 350.

"U.S. stocks closed higher on the back of data showing improved consumer sentiment, and that gave support to the Korean stock market today," Mirae Asset Securities Co. analyst Seo Sang-young said.

"But uncertainties linger, as the earnings season is about to kick off, with many companies expected to post lackluster fourth-quarter results," Seo said.

All major U.S. stock indexes closed higher Friday, with the S&P 500 and tech-rich Nasdaq hitting the highest level in a month, buoyed by expectations the Fed could ease its interest rate hikes after consumer prices rose at the slowest pace in 14 months.

A survey by the University of Michigan indicated U.S. consumer sentiment was improving. The one-year inflation forecast fell to the lowest level in January since early 2021.

In Seoul, foreigners and institutions were net buyers of local equities, scooping up a net 288 billion won and 222 billion won, respectively. Individual investors sold off a net 491 billion won.

Financial and IT service sectors led the Kospi's gain. KB Financial soared 4.5 percent to 60,000 won, and Shinhan Financial spiked 6.7 percent to 43,800 won. Internet bank Kakao Bank jumped 4.6 percent to 29,450 won.

Samsung Electronics rose 0.5 percent to 61,100 won. LG Energy Solution added 0.5 percent to 480,500 won.

Automakers and bio companies finished in negative terrain. Hyundai Motor slipped 1.5 percent to 166,500 won, and Kia dropped 1 percent to 64,600 won.

The local currency ended at 1,235.30 won against the dollar, up 6 won from Friday's close.

The Kosdaq climbed 5.07 points, or 0.71 percent, to close at 716.89 points.

Bond prices, which move inversely to yields, closed loswer. The yield on three-year government bonds rose 8.6 basis points to 3.455 percent, and the yield on the benchmark 10-year government bonds gained 5.9 basis points to 3.504 percent.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]