Kospi closes at highest in seven sessions on boosted investor sentiment

Finance

Kospi closes at highest in seven sessions on boosted investor sentiment

Published: 14 Sep. 2023, 17:07

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,572.89 points on Thursday, up 1.51 percent, or 38.19 points, from the previous trading session. [YONHAP]

Stocks closed higher on Thursday to reach the highest point in seven trading sessions on boosted investor sentiment as the market digested higher-than-expected U.S. inflation data. The won rose against the dollar to gain the most ground in 10 days.

The benchmark Kospi gained 38.19 points, or 1.51 percent, to finish at 2,572.89, the highest since Sept. 5, when the index finished at 2,582.18.

Stocks open higher as U.S. inflation data beats expectations

Trading volume was moderate at 406.1 million shares worth 9.4 trillion won ($7.1 billion), with winners sharply outnumbering losers 608 to 253.

Overnight, the U.S. consumer price index for August rose 3.7 percent from a year earlier, the fastest in 14 months, on high-flying oil prices.

But analysts expect the U.S. Federal Reserve to focus on core inflation, stripping out volatile food and energy prices, which continued to slow to an annual 4.3 percent as expected.

"August inflation rose at a higher-than-expected pace, but at the same time, the core inflation shrugged off concerns over a rate hike," Shinhan Securities analyst Noh Dong-gil said.

"The Federal Reserve will likely remain patient at the upcoming rate-setting meeting next week."

The U.S. producer price index is scheduled for release later in the day.

In Seoul, most large-cap stocks rallied across the board.

Samsung Electronics grew 1.1 percent to 71,700 won, and SK hynix increased 3.1 percent to 122,200 won.

LG Energy Solution added 2.7 percent to 508,000 won, and Samsung SDI surged 4.7 percent to 584,000 won. LG Chem advanced 2.4 percent to 553,000 won.

Posco Holdings jumped 4.5 percent to 553,000 won, and Posco Future M hiked 3.8 percent to 401,500 won.

Hyundai Motor rose 0.5 percent to 190,700 won, and Kia climbed 0.9 percent to 79,200 won.

Naver grew 1.6 percent to 225,500 won, and Kakao added 1.1 percent to 48,300 won.

The local currency ended at 1,325.7 won against the dollar, down 4.3 won from Wednesday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 3.5 basis points to 3.8 percent, and the yield on the benchmark 10-year U.S. government bonds lost 2.7 basis points to 4.3 percent.

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