Seoul Stock Exchange Ends Higher Amid Concerns of US Interest Rate Hikes

In a surprising turn of events, the Seoul stock market finished higher on Monday, despite the prevalent worries regarding potential interest rate increases by the United States aimed at curbing its soaring inflation. This upward movement signifies investors' complex sentiment in the face of economic tightening policies.

On the forefront of this rally, the benchmark Korea Composite Stock Price Index (KOSPI) escalated by 0.86 percent, accruing an additional 21.35 points to culminate the day at 2,491.20.

There was a noteworthy trading activity with about 319.84 million shares exchanged, amassing 6.5 trillion won, equivalent to approximately $5.03 billion. A positive outlook was reflected as the number of stocks ascending notably surpassed those descending, with 648 gainers to 229 losers.

Despite kicking off the day with almost no significant changes, largely due to the anxiety over the US potentially hiking interest rates further, the KOSPI managed to clinch gains by the session's close. The US Federal Reserve has prompted speculations of nearing the end of its rate-hike phase, although a cautionary stance was issued by San Francisco Federal Reserve President Mary Daly indicating a premature conclusion to the tightening measures.

The US stock market indicators also suggested mild positivity with the Dow Jones Industrial Average marginally rising by 0.01 percent to 34,947.28, while the tech-heavy NASDAQ showed a slight increment of 0.08 percent to 14,125.48 previously on Friday.

Heading into the week, market participants are attentively observing Nvidia Corp.'s financial disclosures alongside inflation data releases from Japan and Canada, seeking insights for potential strategy adjustments in their investment portfolios, as per market analysts.

Analyst Park Hee-cheol from Mirae Asset Securities Co. shared insights, "With investors leaning towards the possibility of a Fed rate cut in the upcoming year and anticipating sturdy earnings from Nvidia in line with its tech conglomerate contemporaries, the KOSPI managed to end on a positive note."

Investment activities saw institutions and foreign entities procuring stocks worth 534 billion won, which offset the 539 billion won worth of stock sales by individual investors.

Technology and energy sectors led the gains. Market leader Samsung Electronics inched up by 0.3 percent, semiconductor giant SK hynix ascended by 1.2 percent, and key telecom firm SK Telecom advanced by 0.2 percent, while top battery manufacturer LG Energy Solution surged by 2.8 percent.

However, some market players faced a downtrend. Hyundai Motor saw a decrease of 0.4 percent, Korean Air took a minor hit with a 0.9 percent fall, and Hyundai Steel experienced a dip of 1.3 percent.

In the currency market, the Korean won posted gains against the US dollar, with the local currency closing stronger at 1,291.6 won, up by 5.3 won from its prior close.

Seoul, Stocks, KOSPI