Kospi surges 1.16% as Fed reaffirms rate cuts this year

A screen in Hana Bank's trading room in central Seoul shows the stock market prices as it opens on Thursday. [YONHAP]

Shares opened higher Thursday as U.S. Federal Reserve Chair Jerome Powell reaffirmed rate cuts this year.

The Kospi rose 31.45 points, or 1.16 percent, to 2,738.42 in the first 15 minutes of trading.

The U.S. central bank reiterated it will take a wait-and-see approach before cutting rates this year. However, risk assets were boosted by Powell's view that inflation figures did not materially change the Fed's overall picture.

In Seoul, tech, auto and energy stocks advanced.

Samsung Electronics rose 1.6 percent. SK hynix jumped 3.6 percent, Hyundai Motor gained 0.9 percent and LG Energy Solution rose 1.2 percent.

Among decliners, Korean Air fell 0.2 percent. HD Hyundai declined 0.7 percent and Amorepacific was down 1.6 percent.

The local currency was trading at 1,345.35 won against the dollar, down 3.55 won from the previous session's close.

BY LEE SOO-JUNG, YONHAP [lee.soojung1@joongang.co.kr]