Stocks open tad higher following U.S. inflation data

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Stocks open tad higher following U.S. inflation data

Published: 14 Jun. 2023, 10:12

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets open on Wednesday. [YONHAP]

Stocks opened a tad higher Wednesday as investors keep their eyes on the U.S. Federal Reserve's rate-setting decision later this week following better-than-expected U.S. inflation data released overnight.

The benchmark Kospi rose 3.2 points, or 0.12 percent, to 2,641.45 in the first 40 minutes of trading.

The U.S. Consumer Price Index in May rose 4 percent from a year earlier and just up 0.1 percent on month, according to the U.S. Labor Department Tuesday.

It was the lowest annual growth in more than two years, which could take the Fed's pressure off from continuing the rate increase.

Overnight, the Dow Jones Industrial Average rose 0.43 percent, and the Nasdaq gained 0.83 percent as a modest rise in April inflation fueled hopes for the Fed's rate pause.

In Seoul, most shares traded mixed.

Samsung Electronics dropped 0.97 percent, while LG Electronics gained 0.72 percent.

SK Innovation lost 0.65 percent, but LG Energy Solution climbed 0.33 percent.

The local currency was trading at 1,273.1 won against the dollar at 9:15 a.m., up 1.7 won from the previous session's close.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]