Stocks open higher as investors digest Fed chief's hawkish comments

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Stocks open higher as investors digest Fed chief's hawkish comments

Published: 29 Jun. 2023, 10:12 Updated: 29 Jun. 2023, 10:12

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

Stocks opened higher Thursday as investors digested U.S. Federal Reserve chief's remarks signaling more rate hikes.

The benchmark Kospi gained 8.82 points, or 0.34 percent, to 2,573.01 in the first 15 minutes of trading.

Speaking at a European Central Bank forum in Portugal on Wednesday, Powell reiterated that the Fed will further raise its interest rates this year, and one could be carried out at the next monetary policy meeting set for July.

Powell said it's likely inflation won't come down to near the Fed's target of 2 percent this year or next.

In Seoul, tech stocks led the gains.

Samsung Electronics rose 0.4 percent, and LG Energy Solution climbed 1.5 percent.

Chemical firm LG Chem advanced 1.5 percent.

Auto and financial stocks fell. Hyundai Motor lost 0.3 percent, and Hyundai Mobis slid 0.6 percent. Shinhan Financial shed 0.6 percent.

The local currency was trading at 1,309.60 won against the dollar at around 9:15 a.m., up 2.3 won from Wednesday's close.

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