Kospi closes up as investors bet on U.S. rate cut

Finance

Kospi closes up as investors bet on U.S. rate cut

Published: 02 Sep. 2024, 17:14 Updated: 02 Sep. 2024, 19:13

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

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,689.83 points on Monday, up 0.25 percent, or 6.69 points, from the previous trading session. [YONHAP]

Shares rose Monday as investors bet on a U.S. rate cut. The local currency slightly gained ground against the dollar.

The benchmark Kospi added 6.69 points, or 0.25 percent, to close at 2,681.00.

Trade volume was moderate at 262.5 million shares worth 8.5 trillion won ($6.35 billion), with losers outnumbering gainers 534 to 325.

Foreign investors ended their six-day selling streak, purchasing a net 239 billion won worth of local shares, while institutions also scooped up 158.5 billion won. Retail investors offloaded a net 416 billion won.

The index opened in negative territory, with major tech shares suffering losses following last week's worse-than-expected earnings report from artificial intelligence giant Nvidia.

"The market has changed its color from inflation-sensitive to economic fundamentals-sensitive," Kiwoom Securities analyst Han Ji-young said.

The analyst noted upcoming U.S. jobs data may cause a downturn in the stock market should it fall short of market expectations.

"However, unlike in the past, the negative impact on stock prices and the duration of such an impact will likely be limited," Han said.

Many market experts forecast global stock rallies following a much-anticipated U.S. rate cut.

The U.S. Federal Reserve is set to hold its rate-setting meeting on Sept. 17 and 18.

In Seoul, large caps closed mixed.

Samsung Electronics gained 0.13 percent to 74,700 won, with SK hynix adding 0.17 percent to 174,000 won.

Battery makers sharply advanced, with LG Energy Solution surging 6.19 percent to 412,000 won and Samsung SDS advancing 1.26 percent to 152,600 won.

Hyundai Motor tumbled 3.72 percent to 246,000 won, while Kia stayed flat at 106,100 won.

The local currency was trading at 1,338.4 won against the greenback at 3:30 p.m., up 2.40 won from the previous session. The Kosdaq gained 1.55 points, or 0.20 percent, to close at 769.21.

Bond prices, which move inversely to yields, fell. The yield on three-year Treasurys added 3.6 basis points to 2.989 percent, and the return on the benchmark U.S. 10-year government bonds gained 4.3 basis points to 3.904 percent.

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