Kospi rises 1% following Fed rate cut, won strengthens

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Kospi rises 1% following Fed rate cut, won strengthens

Published: 08 Nov. 2024, 09:54

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Friday. [NEWS1]

Shares opened sharply higher, tracking overnight gains on Wall Street, after the U.S. Federal Reserve lowered its benchmark interest rate by a quarter-percentage point. The Korean won also sharply gained against the greenback.

Kospi added 25.57 points, or 1 percent, to 2,590.2 in the first 15 minutes of trading.

The rate cut marked the second consecutive reduction following a 50-basis-point cut in September. The move came after Republican flag-bearer Donald Trump won in Tuesday's presidential election.

The Nasdaq composite increased 1.51 percent, and the S&P 500 went up 0.74 percent, closing at a record-high level. The Dow Jones Industrial Average closed nearly unchanged.

In Seoul, Samsung Electronics rose 0.87 percent, and SK hynix added 1.82 percent.

LG Energy Solution gained 4.02 percent, and Samsung SDI increased 1.39 percent.

Carmakers also opened higher, with Hyundai Motor moving up 0.48 percent and Kia adding 0.74 percent. Hyundai Mobis climbed 1.88 percent.

The local currency was trading at 1,384.9 won against the greenback, up 11.7 won from the previous session.

Yonhap