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Seoul stock market surges, influenced by Federal Reserve's dovish stance on rate hikes

EditorPollock Mondal
Published 11/10/2023, 10:16
© Reuters.
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The Seoul stock market experienced a significant surge on Wednesday, following Wall Street's overnight gains where the Dow Jones Industrial Average and Nasdaq Composite rose by 0.4 and 0.6 percent respectively. The Korea Composite Stock Price Index (KOSPI) increased by 47.50 points to 2,450.08 amidst a moderate trading volume of 436.76 million shares, valued at 8.57 trillion won ($6.4 billion). This rise was largely influenced by the Federal Reserve officials' dovish remarks on interest rates.

Previously, expectations were high for an increase in interest rates due to robust US employment data in September. However, the officials have now suggested a lesser need for further rate hikes, considering the current economic conditions. This stance has led to a strengthened Korean won against the U.S dollar, trading at 1,339.65 won up from the previous session's close.

Institutions' net purchase of stocks worth 620.84 billion won offset combined stock sales by foreigners and individuals, further boosting the KOSPI. Large-cap stocks such as Samsung Electronics (KS:005930) Co., Samsung SDI Co., and Hyundai Motor (OTC:HYMTF) Co. advanced, with LG Energy Solution reporting a substantial year-on-year increase in Q3 operating profit due to robust U.S demand.

However, not all companies shared in the market's overall success. Shares of Korean Air Co., AmorePacific Corp., and Korea Gas Corp., declined on Wednesday.

Investors are closely observing the ongoing Israel-Palestine conflict for potential impacts on their investments, adding another layer of complexity to an already volatile global economic landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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