Stocks open higher on rate pause hopes

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Stocks open higher on rate pause hopes

Published: 04 Sep. 2023, 09:52

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

Stocks opened higher Monday on positive investor sentiment stemming from hopes on the U.S. Federal Reserve holding its rates steady in the Federal Open Market Committee meeting in September.

The benchmark Kospi rose 7.31 points, or 0.29 percent, to 2,571.02 in the first 15 minutes of trading.

The U.S. unemployment rate jumped to 3.8 percent in August, the U.S. Labor Department said Friday, and wage growth slowed.

The fresh readings came as a reminder the Fed's aggressive tightening policy is working, raising the likelihood the central bank will pause its interest rate hikes in its September policy meeting.

In Seoul, major tech blue chips gathered ground.

Samsung Electronics rose 0.9 percent, and LG Energy Solution gained 1.2 percent. LG Chem climbed 1 percent.

But SK hynix fell 1.3 percent, Hyundai Motor slipped 0.8 percent, and Kia shed 1 percent.

The local currency was trading at 1,321.30 won against the dollar at 9:15 a.m., up 2.5 won from Friday's close.

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