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Kospi closes up 1.23% on hopes of a rate cut hint from Fed

Published: 29 Jul. 2024, 16:29

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,765.53 points on Monday, up 1.23 percent, or 33.63 points, from the previous trading session. [NEWS1]

Shares ended higher for a second straight session Monday amid hopes that the U.S. Federal Reserve will hint at a potential rate cut in September. The won rose in value against the dollar.

The benchmark Kospi added 33.63 points, or 1.23 percent, to close at 2,765.53. The Kosdaq gained 10.43 points, or 1.31 percent, to close at 807.99.

Trading volume was moderate at 449.64 million shares worth 10.78 trillion won ($7.8 billion), with gainers outnumbering losers 634 to 244.

Institutions and foreigners bought a combined 522 billion won worth of stocks, offsetting individuals' stock selling valued at 485 billion won.

The outcome of the Fed's monetary policy meeting that starts Tuesday will set the overall tone for the market, with investors also focusing on earnings reports from major tech firms, such as Apple, Amazon and Samsung Electronics, this week, analysts said.

The U.S. central bank is widely expected to cut rates as early as in September.

In Seoul, tech and auto stocks led the gains.

Samsung Electronics rose 0.4 percent to 81,200 won, and chipmaker SK hynix climbed 2 percent to 195,600 won.

Car manufacturer Hyundai Motor jumped 4.9 percent to 255,500 won, while Kia gained 1.43 percent to 113,700 won. Auto parts maker Hyundai Mobis went up 1.1 percent to 228,000 won.

Bio-related shares also finished bullish. Samsung Biologics rose 2.73 percent to 940,000 won and Celltrion climbed 4.50 percent to 209,000 won.

Defense firm Hanwha Aerospace soared 8.04 percent to 322,500 won.

Battery shares closed mixed. LG Energy Solution rose 1.38 percent to 329,500 won, while Samsung SDI fell 0.7 percent.

Among decliners, shipbuilder Hanwha Ocean fell 2.8 percent to 30,100 won and SK Corporation, the holding firm of SK Group, declined 1.2 percent to 147,600 won.

The local currency was trading at 1,381.90 won against the dollar as of 3:30 p.m., down 3.9 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 4.6 basis points to 2.978 percent, and the return on the benchmark U.S. 10-year bonds dropped 4.7 basis points to 4.196 percent.

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