(NOTE: ADD bond yields below)
SEOUL, Sept. 2 (Yonhap) – South Korean stocks rose on Monday as investors speculated on a U.S. interest rate cut, with the country’s currency losing slightly against the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 6.69 points or 0.25 percent to close at 2,681.00.
Trading volume was moderate at 262.5 million shares valued at 8.5 trillion won ($6.35 billion), with losers outnumbering gainers by a ratio of 534 to 325.
Foreign investors ended their six-day selling streak and bought domestic stocks worth a net 239 billion won, while institutions also bought 158.5 billion won. Retail investors sold a net 416 billion won.
An electronic display board in a Hana Bank trading room in Seoul shows that the Korea Composite Stock Price Index opened slightly lower on Sept. 2, 2024. The index closed higher for the second consecutive day that day, closing at 2,681.00. (Yonhap)
The index opened lower as major technology stocks suffered losses last week due to a worse-than-expected earnings report from artificial intelligence giant Nvidia.
“The market has changed color and is now no longer sensitive to inflation but sensitive to economic fundamentals,” said Han Ji-young, analyst at Kiwoom Securities.
The analyst pointed out that upcoming US labor market data could lead to a downturn in the stock market if it falls short of market expectations.
“However, unlike in the past, the negative impact on stock prices and its duration are likely to be limited,” Han said.
Many market experts are predicting a recovery in global stock prices following the highly anticipated interest rate cut in the US.
The US Federal Reserve is expected to hold its interest rate meeting on September 17 and 18 (US time).
In Seoul, large caps closed mixed.
Market leader Samsung Electronics rose 0.13 percent to 74,700 won, while second-largest chipmaker SK hynix rose 0.17 percent to 174,000 won.
Shares of battery manufacturers rose sharply: Industry leader LG Energy Solution rose 6.19 percent to 412,000 won, and its local competitor Samsung SDS recorded an increase of 1.26 percent to 152,600 won.
Leading automaker Hyundai Motor, on the other hand, lost 3.72 percent to 246,000 won, while shares of its smaller partner Kia Motors remained unchanged at 106,100 won.
The local currency was trading at 1,338.4 won against the greenback at 3:30 p.m., down 2.40 won from the previous session.
Bond prices, which move inversely to yields, fell. The yield on three-year US Treasury notes rose 3.6 basis points to 2.989 percent, and the yield on five-year Treasury notes rose 3.9 basis points to 3.049 percent.
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