SEOUL, South Korean stocks displayed positive momentum as the market opened on Wednesday, with the benchmark Korea Composite Stock Price Index (KOSPI) seeing a substantial increase. This trend follows a period of notable gains on Wall Street and a strategic move by investors to acquire tech bargains after a recent significant decline, all taking place in anticipation of the Federal Reserve’s forthcoming decision on interest rates.
According to Yonhap News Agency, market data, the KOSPI rose by 31.57 points, or 1.39 percent, settling at 2,309.56 within the first 15 minutes of trading. This upward trajectory mirrored the positive close of U.S. shares overnight, where the Dow Jones Industrial Average experienced a 0.38 percent increase, and the Nasdaq Composite, known for its tech-centric portfolio, went up by 0.48 percent.
Investors are now closely watching the Federal Reserve as it concludes its two-day monetary policy meeting, with widespread expectations that interest rates will remain unchanged. All attention is directed towards Fed Chair Jerome Powell, who has previously indicated this month that additional rate hikes might be on the horizon to steer inflation back to its 2 percent target range.
Back in Seoul, the majority of top-cap shares saw an upward trend as trading commenced. Market leader Samsung Electronics experienced a 1.79 percent increase, while semiconductor heavyweight SK hynix saw a significant surge of 2.58 percent. Leading battery manufacturer LG Energy Solution’s stocks went up by 1.43 percent, and top steel producer POSCO Holdings saw a 1.34 percent advance.
In the chemical sector, LG Chem’s shares increased by 0.45 percent, and Samsung SDI witnessed a substantial 4.0 percent rise. The automotive industry also showed signs of growth, with Hyundai Motor, the premier carmaker, experiencing a 0.71 percent increase, and Kia’s shares moving up by 0.91 percent.
In the tech world, internet platform giant Naver’s stocks rose by 2.13 percent, and Kakao experienced a 1.07 percent increase. In the currency market, the local Korean won was trading at 1,353.55 against the U.S. dollar as of 9:15 a.m., marking a decrease of 3.05 won from the previous session's close.