Seoul shares shot up nearly 2 percent Wednesday as investors have accepted Federal Reserve officials' comments as a suggestion that the U.S. bank may not raise rates again this year. The Korean won sharply rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 47.50 points, or 1.98 percent, to close at 2,450.08.
Trading volume was moderate at 436.76 million shares worth 8.57 trillion won (US$6.4 billion), with gainers outpacing losers 709 to 180.
Institutions bought a net 620.84 billion won worth of stocks, offsetting foreigners and individuals' combined stock selling valued at 630 billion won.
Overnight, the Dow Jones Industrial Average rose 0.4 percent to 33,739.30, and the tech-heavy Nasdaq Composite gained 0.6 percent to 13,562.84.
This photo taken on Oct. 11, 2023 shows the dealing room of Hana Bank in Myeongdong, central Seoul. (Yonhap)
This photo taken on Oct. 11, 2023 shows the dealing room of Hana Bank in Myeongdong, central Seoul. (Yonhap)
Fed officials have begun to acknowledge a lesser need for further rate hikes, given the current economic conditions, which buoyed U.S. stocks, analysts said.
Traders have expected another rate hike this year due to higher-than-expected U.S. employment data in September, and they are now keeping a close eye on developments in the Israel-Palestine conflict for cues in reorganizing their investment portfolios.
In Seoul, large-cap stocks advanced across the board.
Market bellwether Samsung Electronics Co. jumped 2.7 percent to 68,200 won, No. 2 car battery maker Samsung SDI Co. jumped 4.3 percent to 511,000 won, top carmaker Hyundai Motor Co. gained 0.5 percent to 189,400 won, and leading car battery firm LG Energy Solution Ltd. jumped 7.3 percent on strong earnings guidance.
In the July-September period, LG Energy Solution posted an estimated operating profit of 731.2 billion won, jumping 40 percent from a year earlier, helped by strong demand in the U.S. market
Among decliners, national flag carrier Korean Air Co. fell 0.2 percent to 20,450 won, leading cosmetics firm AmorePacific Corp. declined 1.6 percent to 113,900 won, and state-run Korea Gas Corp. shed 1 percent to 23,800 won.
The local currency ended at 1,338.70 won against the greenback, up 10.80 won from the previous session's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 4.4 basis points to 3.953 percent, and the return on the benchmark five-year government bonds declined 4.8 basis points to 4.039 percent.
Source: Yonhap News Agency