Seoul: Seoul stocks opened sharply higher, tracking overnight gains on Wall Street as falling oil prices and the Federal Reserve's rate hike eased inflation concerns. The benchmark Korea Composite Stock Price Index (KOSPI) opened up 170.29 points, or 2.54 percent, to reach 6,885.7.
According to Yonhap News Agency, stocks on Wall Street closed higher as investor sentiment improved due to falling oil prices and easing pressures from the U.S. bond market. The SandP 500 added 1.14 percent, while the tech-heavy Nasdaq strengthened 1.69 percent, indicating a positive shift in market dynamics.
The benchmark Brent Crude slid almost 1 percent, settling at around US$104 per barrel. This drop in oil prices contributed to a decrease in bond market yields, providing further relief to investors concerned about inflation.
The Federal Reserve raised its benchmark rate by a quarter percentage point, marking the first increase in over three years as a measure to combat inflation. This move was seen as a significant step in addressing economic challenges, contributing to the overall positive market sentiment.