Shares open higher ahead of BOK rate-setting meeting

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Shares open higher ahead of BOK rate-setting meeting

Published: 11 Oct. 2024, 13:40

KIM JU-YEON
kim.juyeon2@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing on Thursday. [YONHAP]

Shares opened higher Friday with the Korean central bank set to hold a rate-setting meeting later in the day.

The Kospi rose 0.68 percent, or 17.55 points, to 2,616.71 in the first 15 minutes of trading.

BOK cuts rate by 25 basis points for first time in 4 years

Investors' eyes were on the results of the Bank of Korea's monetary policy meeting. The central bank slashed the benchmark interest rate by 25 basis points to 3.25 percent on Friday, delivering its first rate cut since May 2020.

Overnight, Wall Street lost ground amid mixed bets on whether the U.S. Federal Reserve will move for another rate cut in November.

Data released Thursday showed that U.S. core inflation is hotter than expected and that its labor market is slowing down.

In Seoul, Samsung Electronics rose 1.19 percent, and its chipmaking rival SK hynix climbed 0.96 percent.

Battery and auto shares also kicked off in positive territory.

Battery maker LG Energy Solution grew 0.35 percent and Samsung SDI soared 4.19 percent. Posco Future M jumped 2.57 percent.

Carmaker Hyundai Motor and its affiliate Kia were up 0.81 percent and 0.89 percent, respectively.

Financial shares also gained ground, with Shinhan Financial Group up 1.23 percent and Meritz Financial Group up 1.2 percent.

Trading firm Samsung C&T advanced 2.04 percent.

The local currency was trading at 1,349.80 won against the dollar, down 0.4 won from the previous session.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]