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Stocks open higher after Fed keeps rate steady

Published: 02 Nov. 2023, 10:00

PARK EUN-JEE
[email protected]

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

Stocks opened higher on Thursday after the U.S. Federal Reserve held its key rate steady as expected.

The benchmark Kospi shot up 37.01 points, or 1.61 percent, to 2,338.57 in the first 15 minutes of trading.

Overnight, the Fed held its benchmark lending rate steady at a 22-year high for a second consecutive time as it keeps trying to bring down inflation to its 2 percent target.

U.S. stocks closed higher, with the Dow Jones Industrial Average advancing 0.67 percent and the Nasdaq Composite rising 1.64 percent.

In Seoul, top tech giant Samsung Electronics moved up 1.75 percent, and No. 2 chipmaker SK hynix gained 3.08 percent.

Battery makers also traded bullish, with LG Energy Solution rising 1.19 percent and Samsung SDI advancing 2.7 percent.

South Korea's leading online portal operator Naver increased by 1.76 percent, and Kakao gained 1.46 percent.

The local currency was trading at 1,344.80 won against the U.S. dollar at 9:15 a.m., up 12.5 won from the previous session's close.

BY PARK EUN-JEE, YONHAP [[email protected]]