Seoul: South Korean stocks kicked off higher Monday as investor sentiment was boosted after Federal Reserve Chair Jerome Powell hinted at a possible rate cut during the U.S. bank's meeting next month. The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.53 points, or 0.74 percent, to 3,192.26 in the first 15 minutes of trading.
According to Yonhap News Agency, on Friday, Wall Street rallied after Powell stated, "With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," suggesting a potential cut at the Federal Open Market Committee meeting in September. Investors were also awaiting the outcome of the upcoming summit between President Lee Jae Myung and U.S. President Donald Trump, scheduled to be held in Washington on Monday (U.S. time).
South Korean chipmaker SK hynix gained 1.59 percent, and battery producer LG Energy Solution climbed 1.29 percent. In contrast, Samsung Electronics saw a slight decline, edging down 0.14 percent. Financial shares were among the winners, with KB Financial moving up 1.48 percent and Shihan Financial rising 0.9 percent.
The local currency was trading at 1,386.7 won against the U.S. dollar at 9:15 a.m., up 6.5 won from the previous session.