Stocks open higher as U.S. economic data fuels hope of rate hike pause

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Stocks open higher as U.S. economic data fuels hope of rate hike pause

Published: 30 Aug. 2023, 09:57 Updated: 30 Aug. 2023, 09:59

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

Stocks opened higher for a third straight session on Wednesday following Wall Street gains.

The benchmark Kospi rose 20.93 points, or 0.82 percent, to 2,573.09 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average rose 0.9 percent, and the tech-heavy Nasdaq Composite climbed 1.7 percent.

Latest U.S. economic data, including decreased job openings and weakened consumer confidence, has raised hopes for a pause in rate hikes, raising chances that the U.S. Federal Reserve will begin to cut rates in the first half of 2024, analysts said.

The U.S. central bank is widely expected to keep rates unchanged in September.

In Seoul, most large-cap stocks advanced.

Samsung Electronics rose 0.9 percent, and SK hynix jumped 2.8 percent.

LG Energy Solution gained 0.7 percent, and Hyundai Motor was up 0.6 percent.

Among decliners, Korea Gas Corporation fell 0.4 percent, and Hankook Tire & Technology declined 0.5 percent.

Korea Aerospace Industries shed 0.2 percent, and HMM was down 1.5 percent.

The local currency was trading at 1,319.60 won against the dollar at 9:15 a.m., down 2.3 won from the previous session's close.

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