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Kospi closes with big gains on optimism for Fed rate cut this year

Published: 04 Apr. 2024, 16:50

KIM JI-YE
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,742.00 points on Thursday, up 1.29 percent, or 35.03 points, from the previous trading session. [NEWS1]

Stocks rebounded sharply on Thursday from the previous session's dip on tech and auto gains as well as revived optimism for rate cuts by the U.S. Federal Reserve this year ,while the won rose against the dollar.

The Kospi rose 35.03 points, or 1.29 percent, to close at 2,742.00.

Trade volume was moderate at 468.06 million shares worth 11.64 trillion won ($8.6 billion), with decliners outpacing gainers 465 to 416.

Foreigners bought a net 588 billion won worth of stocks, offsetting institutions and individuals' combined stock selling valued at 580 billion won.

While the U.S. central bank reiterated that it will take a wait-and-see approach before cutting rates this year, comments on Wednesday by Fed Chairman Jerome Powell that inflation figures did not materially change the bank's overall picture revived an appetite for emerging-market assets.

Investors also took relief from the weaker-than-expected U.S. services purchasing managers index, released overnight, which offset strong manufacturing activity announced earlier this week.

In Seoul, tech and auto stocks led the gains.

Samsung Electronics rose 1.43 percent to 85,300 won, while SK hynix jumped 4.91 percent to 188,000 won.

Hyundai Motor gained 4.63 percent to 226,000 won and Kia jumped 4.81 percent to 106,700 won.

LG Energy Solution was up 0.93 percent to 379,500 won and Posco Future M climbed 1.29 percent to 274,500 won.

KB Financial Group gained 3.27 percent to 69,500 won and Hana Financial Group rose 4.86 percent to 58,300 won. Shinhan Financial Group moved up 2.41 percent to 44,550 won.

Among decliners, Korean Air fell 1.16 percent to 21,250 won and HD Hyundai slipped 0.28 percent to 70,200 won.

Amorepacific was down 2.43 percent to 132,400 won, while Hanmi Semiconductor dropped 5.24 percent to 137,300 won.

Kakao fell 3.33 percent to 49,300 won and HYBE moved down 1.34 percent to 221,000 won.

The local currency closed at 1,347.10 won against the greenback, down 1.8 won from the previous session's close.

The Kosdaq rose 2.94 points, or 0.33 percent, to close at 882.90.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 0.2 basis points to 3.339 percent and the return on the benchmark U.S. 10-year government bonds lost 0.6 basis points to 4.351 percent.

BY KIM JI-YE, YONHAP [[email protected]]