Seoul shares extended earlier gains late Wednesday morning, tracking gains on Wall Street after Federal Reserve officials made dovish comments on interest rates.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 52.02 points, or 2.17 percent, to 2,454.60 as of 11:20 a.m.
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.
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.
Institutions and foreigners bought a combined 339 billion won (US$253 million) worth of stocks, exceeding individuals’ stock selling valued at 328 billion won.
In Seoul, large-cap stocks advanced across the board.
Market bellwether Samsung Electronics Co. jumped 4 percent, and No. 2 chipmaker SK hynix Inc. climbed 2.6 percent. Top carmaker Hyundai Motor Co. gained 0.6 percent, national flag carrier Korean Air Co. was up 0.2 percent, and leading refiner SK Innovation Co. jumped 4.5 percent.
Among decliners, No. 1 wireless services provider SK Telecom Co. fell 0.6 percent, Hyundai Engineering and Construction Co. declined 0.8 percent, and leading discount store chain E-Mart Inc. shed 0.6 percent.
The local currency was trading at 1,340.35 won against the U.S. dollar at 11:20 a.m., up 9.15 won from the previous session’s close.
Source: Yonhap News Agency