Seoul: Seoul shares extended gains late Thursday morning on strength in technology and automobile stocks, after the Federal Reserve delivered its first interest rate cut of the year. The benchmark Korea Composite Stock Price Index (KOSPI) rose 25.70 points, or 0.75 percent, to 3,439.10 as of 11:20 a.m.
According to Yonhap News Agency, the main index advanced despite a mixed close on Wall Street, 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, while the tech-heavy Nasdaq composite fell 0.33 percent.
U.S. stocks initially rose on Fed officials’ projections of two additional rate cuts this year but later pared gains after Chair Jerome Powell stressed that they were only projections. Institutions and individuals bought a net 25.5 billion won (US$18 million) and 20.9 billion won worth of stocks, respectively, while foreigners sold a net 67.5 billion won.
In Seoul, tech and auto stocks led gains. Market bellwether Samsung Electronics added 1.85 percent, and its chipmaking rival SK hynix jumped 5.1 percent. Top carmaker Hyundai Motor gained 0.23 percent, and leading shipbuilder HD Hyundai Heavy Industries advanced 0.4 percent.
Among decliners, defense powerhouse Hanwha Aerospace fell 1.75 percent, and leading shipping firm HMM declined 1.91 percent. The local currency was trading at 1,383.15 won against the U.S. dollar at 11:20 a.m., down 3.05 won from the previous session.