Stocks open higher following dovish Fed remarks

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Stocks open higher following dovish Fed remarks

Published: 10 Oct. 2023, 11:47

KIM JI-YE
kim.jiye@joongang.co.kr

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

Shares opened higher Tuesday, tracking gains on Wall Street after U.S. Federal Reserve officials made dovish comments on rates, with investors assessing uncertainties over the Israel-Hamas conflict.

The Kospi rose 33.18 points, or 1.38 percent, to 2,441.91 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average rose 0.6 percent to 33,604,65, and the Nasdaq Composite gained 0.4 percent to 13,484.24.

Traders have expected another rate hike this year due to better-than-expected U.S. employment data in September, but the U.S. central bank said the odds for further tightening have dropped dramatically amid the Israel-Hamas conflict.

In Seoul, most large-cap stocks advanced.

Samsung Electronics rose 2.3 percent, and SK hynix climbed 2.7 percent.

SK Telecom jumped 3.8 percent, Hyundai Mobis 1.7 percent and LG Energy Solution 1 percent.

Defense and oil stocks rallied as the Israel-Hamas conflict rattled the global financial markets.

Hanhwa Aerospace Co. rose 7.29 percent and Korea Aerospace Industries 4.59 percent as of 9:55 a.m.

S-Oil rose 5.90 percent, GS Caltex 3.79 percent and SK Innovation 2.52 percent.

Korea Petroleum jumped 21.88 percent and Kukdong Oil and Chemicals 15.38 percent.

Among decliners, Korean Air fell 1.4 percent. KG Mobility, formerly SsangYong Motor, declined 1.2 percent, and AmorePacific shed 0.5 percent.

The local currency was trading at 1,345.25 won against the dollar at 9:15 a.m., down 4.65 won from the previous session's close.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]