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Kospi climbs 1.14% to extend winning streak

Published: 24 Sep. 2024, 17:10 Updated: 24 Sep. 2024, 17:18

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,631.68 points on Tuesday.[NEWS1]

Shares closed higher Tuesday to extend their winning streak to a sixth day, driven by hopes of further U.S. rate cuts and expectations for China's stimulus plan. The local currency rose against the dollar.

The benchmark Kospi added 1.14 percent, or 29.67 points, to 2,631.68.

Trading volume was slim at 345.9 million shares worth 10.1 trillion won ($7.6 billion), with gainers surpassing decliners 605 to 264.

Institutions bought 561.6 billion won worth of local shares to offset foreign and retail investors' combined sales of 578.2 billion won.

Overnight, major U.S. indexes gained ground as a number of the Federal Reserve's policymakers voiced support for more rate cuts in the future.

Last week, the Fed cut its lending rate by half a percentage point to a range of 4.75 percent to 5 percent and also pledged further cuts.

"Investor sentiment was lifted by the U.S. rate cut and China's announcement of its plan to lower its interest rates," said Lee Kyoung-min, an analyst at Daishin Securities.

Earlier in the day, China's central bank unveiled its financial stimulus package to tackle deflation, including liquidity injections and rate cuts.

Lee also said investors are paying attention to the launch of the Korea Exchange's value-up index later this month.

In Seoul, Samsung Electronics gained 0.96 percent to 63,200 won, and SK hynix increased 0.93 percent to 163,500 won.

Battery makers rallied to reflect Tesla's 4.93 percent jump overnight.

LG Energy Solution soared 4.03 percent to 413,000 won, and Samsung SDI advanced 2.24 percent to 387,500 won. Posco Future M also shot up 4.58 percent to 251,000 won.

Auto shares also gained ground, with Hyundai Motor up 1.61 percent to 253,000 won and Kia up 0.58 percent to 103,800 won.

The local currency was trading at 1,334.9 won against the greenback as of 3:30 p.m., down 1 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 1.6 basis points to 2.848 percent, and the return on the benchmark U.S. 10-year government bond rose 0.7 basis points to 3.747 percent.

BY YOON SEUNG-JIN, YONHAP [[email protected]]