Stocks rebound as Fed policy meeting begins

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,301.56 points on Wednesday, up 1.03 percent, or 23.57 points, from the previous trading session. [YONHAP]

Stocks rebounded Wednesday after falling to their lowest point since January in the previous session, as investors sought bargains ahead of the Federal Reserve's policy meeting. The local currency fell against the greenback.

The benchmark Kospi added 23.57 points, or 1.03 percent, to close at 2,301.56.

Trading volume was moderate at 350 million shares worth 6.66 trillion won ($4.9 billion), with gainers outnumbering losers 636 to 251.

Foreigners dumped a net 127.2 billion won worth of local shares, and individuals sold a net 379.2 billion won. Institutions bought a net 464.2 billion won.

The Fed began a two-day monetary policy meeting Tuesday, where it is widely expected to hold interest rates steady.

Eyes are on Fed Chair Jerome Powell's comments on the central bank's future rate policy, as he signaled earlier this month that more rate increases are still possible to bring inflation back to its 2 percent target range.

“The market advance also came after eased concerns surrounding the Middle East following reports that Hamas plans to release some of its hostages,” said Han Ji-young, an analyst from Kiwoom Securities.

Samsung Electronics jumped 2.54 percent to 68,600 won, and chipmaker SK hynix rose 3.44 percent to 120,300 won.

Battery makers traded mixed, with LG Energy Solution falling 2.08 percent to 377,500 won, while Samsung SDI closed unchanged at 425,500 won.

Portal operator Naver edged up 0.16 percent to 187,700 won after announcing that it plans to retire 305.3 billion won worth of treasury stock.

Carmaker Hyundai Motor gained 0.35 percent to 170,300 won, and its smaller sister Kia added 0.65 percent to 77,400 won. Auto parts manufacturer Hyundai Mobis moved up 1.92 percent to 212,500 won.

The local currency ended at 1,357.30 won against the dollar, up 6.8 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 1.3 points to 4.073 percent, and the return on the benchmark U.S. 10-year government bond rose 3.9 points to 4.932 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]