Stocks open higher after U.S. Fed Chair signals rate hike pause in September

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Stocks open higher after U.S. Fed Chair signals rate hike pause in September

Published: 28 Aug. 2023, 10:20 Updated: 28 Aug. 2023, 10:49

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

Stocks opened higher Monday after the U.S. Federal Reserve Chair Jerome Powell calls inflation 'too high' on Friday.

The benchmark Kospi rose 7.25 points, or 0.29 percent, to 2,526.39 in the first 15 minutes of trading.

Overnight, U.S. stocks ended in positive territory, with the Dow Jones Industrial Average rising 0.7 percent and the tech-heavy Nasdaq Composite climbing 0.9 percent.

In his speech Friday in Jackson Hole, Wyoming, Powell said bringing inflation back to its target still has a long way to go, but he hinted rates would remain unchanged in September.

In Seoul, most large-cap stocks were mixed.

Samsung Electronics fell 0.6 percent, and Hyundai Motor declined 0.2 percent.

Hanjin KAL, the parent firm of Korean Air, shed 0.4 percent, and Hyundai Mobis was down 0.9 percent.

Among gainers, LG Energy Solution gained 0.2 percent, and SK Innovation was up 1.5 percent.

State utility Korea Electric Power Corporation rose 1.7 percent, and Amorepacific jumped 4.4 percent.

The local currency was trading at 1,321.55 won against the dollar at 9:15 a.m., down 3.65 won from the previous session's close.

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