Kospi rises as U.S. Fed hints at rate cuts

Finance

Kospi rises as U.S. Fed hints at rate cuts

Published: 01 Aug. 2024, 10:30

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,770.69 points on Wednesday, up 1.19 percent, or 32.50 points, from the previous trading session. [NEWS1]

Stocks started higher Thursday, driven by the U.S. Federal Reserve's rate-cut signals.

The benchmark Kospi gained 18.65 points, or 0.67 percent, to 2,789.34 in the first 15 minutes of trading.

At its rate-setting meeting, the U.S. central bank froze its key rate in the 5.25-5.50 percent range. Chair Jerome Powell said a reduction in policy rate "could be on the table" at its upcoming meeting next month.

The comments pushed up U.S. stocks, with the Dow Jones Industrial Average rising 0.24 percent and the tech-heavy Nasdaq composite advancing 2.64 percent.

In Seoul, market heavyweights led the upbeat start.

Samsung Electronics added 1.19 percent, and its SK hynix rose 3.03 percent.

Hyundai Motor gained 2.21 percent, and its Kia increased 1.07 percent.

LG Energy Solution climbed 1.08 percent, and Hanwha Aerospace went up 2.08 percent.

The local currency was trading at 1,368.85 won against the dollar, down 7.65 won from the previous session's close.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]