SEOUL - South Korean stocks ended on a high note Monday, fueled by speculation that the U.S. Federal Reserve may reduce its interest rates next year in response to easing inflation concerns. Concurrently, the local currency, the won, strengthened against the U.S. dollar.
According to Yonhap News Agency, the KOSPI's upward momentum was driven by expectations that the Federal Reserve would initiate interest rate reductions next year. This optimism aligns with the positive performance of major U.S. indexes on Friday, following remarks by Fed Chairman Jerome Powell on the slowing U.S. economy and the restrictive nature of current monetary policy.
The Korea Composite Stock Price Index (KOSPI) experienced a 0.4 percent rise, closing at 2,514.95 points. Trading volume was moderate with about 489.9 million shares valued at 8.5 trillion won (approximately US$6.5 billion) changing hands. There was a slight dominance of gainers over losers, with institutions and foreigners purchasing shares collectively worth 429.6 billion won, while individuals sold shares amounting to 412.7 billion won.
In Seoul, technology and battery stocks led the gains. Market leaders such as Samsung Electronics and internet portal Naver saw their stock prices increase, while shares in major battery makers LG Energy Solution and POSCO Future M also advanced. However, the automobile sector, including Hyundai Motor and Kia, and the chemical producer LG Chem, closed with declines.
In the bond market, prices rose as yields fell. The yield on three-year Treasurys decreased by 5.6 basis points, and the return on the benchmark five-year government bonds also saw a decline.