Seoul shares open higher on Fed minutes
Published : May 26, 2022 - 09:49
Updated : May 26, 2022 - 09:49
An electronic board showing the Korea Composite Stock Price Index (Kospi) at a dealing room of the Hana Bank headquarters in Seoul on Thursday. (Yonhap)

South Korean stocks open higher Thursday, as the US central bank signaled room for flexibility in aggressive interest rates hike plans.

The Korea Composite Stock Price Index (KOSPI) rose 16.21 points, or 0.62 percent, to trade at 2,633.43 in the first 15 minutes of trading.

Overnight, US stocks closed higher after the US Federal Reserve released minutes of its May meeting, which showed support for a 50-basis point increase in key rates over the next couple of meetings to tame inflation.

The minutes also showed the officials are attentive to financial and economic conditions when preparing for further rate hikes.

The Dow Jones Industrial Average rose 0.6 percent, and the tech-heavy Nasdaq composite jumped 1.51 percent.

Investors here are also closely watching the Bank of Korea's rate-setting meeting Thursday, where many expect the central bank to raise the key rate to combat inflation.

In Seoul, most large-cap shares gathered ground, with tech and bio leading the upturn.

Market heavyweight Samsung Electronics rose 0.6 percent, and top battery maker LG Energy Solution grew 0.47 percent.

Pharmaceutical giant Celltrion soared 0.98 percent, and Samsung Biologics gained 0.48 percent.

Carmakers also rose, with both Hyundai Motor and Kia jumping 1.09 percent each.

The local currency was trading at 1,264.60 won against the US dollar as of 9:15 a.m., unchanged from the previous session's close. (Yonhap)