SEOUL — Seoul's stock market closed higher for the second consecutive day on Monday, driven by investor optimism over a potential U.S. Federal Reserve rate cut in the upcoming month. The Korean won also gained strength against the U.S. dollar, reflecting positive market sentiment.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose by 33.63 points, or 1.23 percent, to end at 2,765.53. Trading volume was robust with 449.64 million shares exchanged, valued at approximately 10.78 trillion won (US$7.8 billion). The market saw a net purchase of stocks by institutions and foreign investors totaling 522 billion won, which helped offset the selling by individual investors amounting to 485 billion won.
The focus of investors is now turning to the Federal Reserve's monetary policy meeting starting Tuesday in the U.S., with major earnings reports from tech giants like Apple Inc., Amazon.com Inc., and Samsung Electronics also on the radar. The expectations of a rate cut as early as September have buoyed sectors across the board, with notable gains in tech and auto stocks, while some sectors like shipbuilding and batteries saw declines. Additionally, bond prices rose, with yields on government securities falling, reflecting a cautious but optimistic market outlook.