South Korean share prices opened higher Wednesday as investors were calmed by comments from the U.S. Federal Reserve chief Janet Yellen that ruled out an immediate rate hike.

The benchmark Korea Composite Stock Price Index rose 9.78 points, or 0.49 percent, to 2,004.69 in the first 15 minutes of trading.


The index was trading 0.55 percent higher at 2005.97 as of 9:55 a.m.

On Tuesday, Yellen said at an economic club meeting in New York that she considers it “appropriate” for the Fed’s rate setting committee to “proceed “cautiously” in adjusting its policy rates.

Stocks rose on the comments, and overnight, the Dow Jones industrial average ended 0.56 percent higher. Investors tend to buy more equities when interest rates are down, making it cheaper for companies to make investments and spend money.

Auto, chemical shares opened strong, but banks and telecom issues started lower.

(khnews@heraldcorp.com)