Seoul: South Korean stocks traded nearly 1 percent higher late Monday morning as investors placed hopes on a potential rate cut by the Federal Reserve next month and awaited the outcome of the summit between South Korea and the United States. The benchmark Korea Composite Stock Price Index (KOSPI) gained 30.98 points, or 0.98 percent, reaching 3,199.71 as of 11:20 a.m.
According to Yonhap News Agency, Fed Chair Jerome Powell had hinted at a possible rate cut during the U.S. bank's meeting next month. The Seoul-Washington summit, set for Monday (U.S. time) in Washington, follows a recent trade deal that lowered U.S. reciprocal tariffs on South Korean goods from 25 percent to 15 percent in exchange for South Korea's pledge of US$350 billion in investment and $100 billion in U.S. energy purchases.
Top tech giant Samsung Electronics remained unchanged, while SK hynix experienced a 3.39 percent jump. LG Energy Solution and Samsung SDI increased by 2.45 percent and 2.78 percent, respectively. Naver, South Korea's leading online giant, gained 1.13 percent, with Kakao adding 1.57 percent.
The local currency was trading at 1,387.5 won against the U.S. dollar at 11:20 a.m., up 5.7 won from the previous session.