Seoul: South Korean stocks opened higher Friday, heading toward a new all-time high, amid growing hopes that the U.S. Federal Reserve may cut its key rates next week following the latest U.S. inflation data that came in line with market expectations. The benchmark Korea Composite Stock Price Index (KOSPI) rose 24.49 points, or 0.73 percent, to 3,368.69 in the first 15 minutes of trading, breaking the record high of 3,344.2 posted the previous day.

According to Yonhap News Agency, overnight, Wall Street gathered ground, with the Dow Jones Industrial Average jumping 1.36 percent, the tech-heavy Nasdaq composite rising 0.72 percent, and the S and P 500 adding 0.85 percent. Investor sentiment was boosted as the latest U.S. consumer price index (CPI) buoyed bets that the Fed will move to cut key rates next week.

The CPI showed that inflation is still above the Fed’s 2 percent target but is calm enough for it to give the green light to rate cuts, considering the weakness in the labor market. In Seoul, chip shares led the KOSPI’s rise, with market bellwether Samsung Electronics jumping 2.18 percent, and its chipmaking rival SK hynix soaring 5.05 percent.

Leading battery maker LG Energy Solution climbed 1 percent, and Kakao, the operator of the country’s dominant mobile messenger, surged 2.67 percent. However, major shipbuilders started weak, with HD Hyundai Heavy slipping 2.13 percent, Hanwha Ocean losing 1.51 percent, and HD Korea Shipbuilding dipping 2.36 percent. Power plant manufacturer Doosan Enerbility also slid 2.62 percent.

Top automaker Hyundai Motor went down 0.67 percent, and its sister company Kia dropped 0.75 percent. The local currency was trading at 1,389.1 won against the U.S. dollar at 9:15 a.m., up 2.7 won from the previous session.