SEOUL– Seoul shares extended gains late Wednesday morning as Federal Reserve Chair Jerome Powell expected that this year may see a significant drop in inflation.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.45 points, or 1.12 percent, to 2,479.16 as of 11:20 a.m.
Overnight, the Dow Jones Industrial Average rose 0.8 percent to 34,156.69 and the tech-heavy Nasdaq Composite climbed 1.9 percent to 12,113.79.
At the Economic Club of Washington on Tuesday (U.S. time), Powell said disinflation has begun, though further rate hikes will likely be needed to combat inflation if the job market remains strong.
The Fed raised rates by 25 basis points last week to a band of 4.5 percent to 4.75 percent.
Foreigners bought a net 240 billion won (US$190 million) worth of stocks, offsetting institutions and individuals’ stock selling valued at 226 billion won.
In Seoul, tech and auto stocks led gains.
Market behemoth Samsung Electronics Co. rose 1.6 percent, No. 2 chipmaker SK hynix Inc. climbed 2.4 percent, top carmaker Hyundai Motor Co. gained 0.8 percent, and leading car battery maker LG Energy Solution was up 0.7 percent.
Among losers, budget carrier Jin Air Co. fell 0.6 percent, Air Busan Co. declined 0.8 percent, and Daewoo Shipbuilding & Marine Engineering Co. shed 3.2 percent.
The local currency was trading at 1,256.55 won against the U.S. dollar, down 1.25 won from the previous session’s close.
Source: Yonhap News Agency