SEOUL — The Seoul stock market experienced a notable uptick, closing over 1 percent higher on Friday, buoyed by optimistic comments from U.S. Federal Reserve Chair Jerome Powell regarding potential interest rate cuts within the year. Investors responded positively to Powell's dovish stance, which was conveyed during his recent testimonies to the U.S. Senate and House of Representatives, leading to gains in major indices and stocks.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose by 32.73 points, or 1.24 percent, to conclude at 2,680.35. The trading volume for the day was moderate, with 444.9 million shares changing hands, amounting to a total value of approximately 11.1 trillion won (US$8.45 billion). Market dynamics showed a favorable bias, with advancing stocks outnumbering declining ones by a margin of 520 to 350. Foreign investors net purchased 178 billion won worth of stocks, while individual investors offloaded a net total of 906 billion won. Institutional investors, on the other hand, net acquired stocks valued at 698.5 billion won.
The surge in investor confidence followed Powell's indication that the Federal Reserve is approaching a level of assurance that inflation is trending towards its target of 2 percent. Furthermore, Powell hinted that adjustments to the Fed's rate policy could be anticipated at some point this year, a prospect that has reduced market anxieties related to monetary policy risks. Notable gains were observed among heavyweight tech companies, pharmaceutical firms, and select entertainment and battery manufacturers, contributing to the overall positive market sentiment. The local currency, the South Korean won, also strengthened against the U.S. dollar, closing at 1,319.8 won, an improvement of 11.1 won from the previous session. Bond prices, inversely related to yields, finished higher, reflecting a broader appetite for risk amid optimistic economic forecasts.