Kospi climbs in early trading despite Wall Street losses

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Kospi climbs in early trading despite Wall Street losses

Published: 01 Feb. 2024, 09:58

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show stock markets open on Thursday. [NEWS1]

Shares opened higher Thursday despite overnight Wall Street losses from the U.S. Federal Reserve's indication that it won't likely cut interest rates next month against the hopes of many investors.

The Kospi climbed 9.56 points, or 0.38 percent, to 2,506.65 in the first 15 minutes of trading.

Overnight, the Fed held its benchmark lending rate steady for the fourth consecutive time. After the two-day Federal Open Market Committee meeting, Fed Chair Jerome Powell said that a rate cut in March is "probably not the most likely case."

The signal did not bode well with Wall Street investors. The S&P 500 dropped 1.6 percent, marking its worst daily loss since September. The Dow Jones Industrial Average and the Nasdaq composite also fell 0.80 percent and 2.2 percent, respectively.

In Seoul, tech and financial shares led the overall gains, with Samsung Electronics adding 0.83 percent and KB Financial jumping 3.71 percent.

Automakers also enjoyed brisk trading, with Hyundai Motor and Kia both climbing 3.03 percent and 0.78 percent, respectively.

Battery and steel shares, however, lost ground. LG Energy Solution dropped 0.92 percent and Posco Holdings slumped 1.41 percent.

The local currency was trading at 1,333.80 won against the dollar, down 0.80 won from the previous session's close.

BY KIM JU-YEON, YONHAP [[email protected]]