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Stocks open higher following Wall Street rally overnight

Published: 16 Jun. 2023, 10:10

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

Stocks opened higher Friday as investors welcomed U.S. economic data showing strong consumer demand and signs of disinflation encouraging an early end to the U.S. Federal Reserve's monetary tightening.

The benchmark Kospi rose 5.4 points, or 0.21 percent, to 2,613.94 in the first 15 minutes of trading.

Wall Street rallied Thursday as optimism grew that the Fed would loosen its grip on interest rate hikes after the latest economic data showed a stronger-than-expected economy and signs of inflation easing.

U.S. retail sales unexpectedly rose in May as purchases of vehicles and other goods increased. The most recent data on jobless claims climbed above the market forecast.

In Seoul, major financial and IT stocks gained ground.

KB Financial advanced 1.5 percent, and Hana Financial rose 1.1 percent.

Naver increased by 1 percent, and Kakao added 0.4 percent.

Tech blue chips traded mixed. Samsung Electronics fell 0.6 percent, while LG Energy Solution was up 0.2 percent.

The local currency was trading at 1,269.8 won against the dollar at around 9:15 a.m., down 10.7 won from Thursday's close.

BY SOHN DONG-JOO, YONHAP [[email protected]]