Seoul: South Korean stocks experienced a 0.49 percent rise late Wednesday morning, driven by hopes for a potential rate cut in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) gained 15.49 points, reaching 3,205.4 as of 11:20 a.m.
According to Yonhap News Agency, the optimism in the South Korean market was fueled by better-than-expected inflation data from the United States for July. This data has increased expectations that the Federal Reserve may consider an interest rate cut in their upcoming September meeting. In response, the S and P 500 rose by 1.1 percent, achieving a new record high on Tuesday (U.S. time), while the tech-heavy Nasdaq composite saw a 1.4 percent increase, setting its own record. The Dow Jones Industrial Average also climbed by 1.1 percent.
In Seoul, the positive trend was led by tech and energy shares. Chip giant SK hynix saw a 2.79 percent increase, while LG Electronics rose by 2.37 percent. Korea Electric Power Corp. advanced by 2.08 percent, and Doosan Enerbility gained 1.07 percent. Among other sectors, leading pharmaceutical company Samsung Biologics climbed 0.98 percent, and major shipbuilder Hanwha Ocean increased by 1.54 percent.
The local currency also saw movement, trading at 1,386.1 won against the U.S. dollar at 11:20 a.m., up 3.8 won from the previous session.