Seoul Stocks Close Higher Amid US Interest Rate Concerns

Despite widespread concerns about potential rate hikes by the US to combat inflation, Seoul's stock market finished on an upbeat note on Monday. The Korean won also saw an appreciation against the dollar.

The main stock index in South Korea, the Korea Composite Stock Price Index (Kospi), experienced a 0.86 percent increase, translating to a gain of 21.35 points, settling at 2,491.20 by the close of the day's trading.

A total of 319.84 million shares changed hands, valued at approximately 6.5 trillion won ($5.03 billion). Companies whose stock prices increased were more numerous, with 648 advancing as opposed to 229 that declined.

Despite starting the day with little change amid the looming worry of a further rate increase by the US Federal Reserve, the Kospi managed to end on a positive note.

There has been an anticipation of a pause in the Federal Reserve's interest rate hiking cycle, yet recent comments by San Francisco Fed President Mary Daly have signaled that it might be premature to stop the monetary tightening.

The previous Friday saw a minor uptick in US markets, with the Dow Jones Industrial Average edging up by 0.01 percent to 34,947.28 and the tech-focused NASDAQ increasing by 0.08 percent to 14,125.48.

Market analysts are advising investors to keep an eye out for earnings reports from Nvidia Corp., as well as inflation data from Japan and Canada, which could provide important signals for adjusting investment portfolios.

Mirae Asset Securities Co. analyst Park Hee-cheol noted that expectations for a Fed rate cut in the next year and strong earnings from Nvidia, following its peers' robust performance, have contributed to a positive sentiment for the Kospi.

Despite individual investors selling off stocks, institutional and foreign purchases totaled 534 billion won, more than compensating for the sales.

Technology and energy sectors led the gains, with Samsung Electronics, SK hynix, SK Telecom, and LG Energy Solution all seeing their share prices climb, while Hyundai Motor, Korean Air, and Hyundai Steel experienced declines.

The Korean won closed stronger against the US dollar at 1,291.6 won, a 5.3 won increase from the previous session.

Seoul, stocks, inflation