Stocks open flat amid hopes for rate hike pause

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Stocks open flat amid hopes for rate hike pause

Published: 01 Sep. 2023, 10:00

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

Stocks opened flat Friday as expectations for a pause in interest rate hikes grow on recent U.S. economic data.

The benchmark Kospi rose 0.84 points, or 0.03 percent, to 2,557.11 in the first 15 minutes of trading. Stocks fluctuated in and out of positive terrain.

Wall Street ended mixed Thursday as investors cemented bets the U.S. Federal Reserve will pause its hiking of interest rates after data showed the Personal Consumption Expenditures (PCE) index, a key gauge of inflation, rose 3.3 percent in July on an annual basis, in line with the consensus.

The core PCE index, which excludes more volatile food and energy prices, rose 4.2 percent in the same month annually, in line with the market estimate.

Expectations for a pause in rate hikes are growing as the world's largest economy shows signs of a slowdown.

In Seoul, Samsung Electronics gained 0.6 percent, while LG Energy Solution sank more than 2 percent.

LG Chem fell 1.2 percent, and Posco Future M lost nearly 1.8 percent.

SK Innovation rose 0.8 percent, and LG Electronics advanced 1.4 percent.

The local currency was trading at 1,322.30 won against the dollar at 9:15 a.m., up 0.5 won from Thursday's close.

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