Seoul: Seoul shares opened higher Thursday after the Federal Reserve delivered its first interest rate cut of the year. The benchmark Korea Composite Stock Price Index (KOSPI) rose 19.03 points, or 0.56 percent, to 3,432.43 in the first 15 minutes of trading.
According to Yonhap News Agency, the main index gained ground despite a mixed close on Wall Street overnight after the Fed lowered its benchmark rate by a quarter percentage point to a range of 4.00-4.25 percent. The Dow Jones Industrial Average increased 0.57 percent to 46,018.32 points, while the tech-heavy Nasdaq composite fell 0.33 percent to 22,261.33 points.
U.S. stocks initially rose on Fed officials’ projections of two additional rate cuts this year but later pared gains after Chair Jerome Powell said they were only projections. In Seoul, large-cap stocks were mixed. Market bellwether Samsung Electronics added 1.21 percent, and its chipmaking rival SK hynix climbed 3.6 percent.
Top carmaker Hyundai Motor gained 0.12 percent, and leading shipbuilder HD Hyundai advanced 0.87 percent. Among decliners, leading battery maker LG Energy Solution fell 0.29 percent, and defense powerhouse Hanwha Aerospace slipped 0.58 percent.
The local currency was trading at 1,383.85 won against the U.S. dollar at 9:15 a.m., down 3.75 won from the previous session.