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Seoul stocks open higher ahead of Fed policy meeting

Sept. 20, 2022 - 09:46 By Yonhap
An electronic board showing the Korea Composite Stock Price Index (Kospi) at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap)

South Korean stocks opened higher Tuesday as investors picked up oversold issues ahead of the highly anticipated US Federal Reserve's rate-setting meeting.

The Korea Composite Stock Price Index (KOSPI) rose 24.61 points, or 1.04 percent, to 2,380.27 in the first 15 minutes of trading.

The market has been roiled amid worries that the Fed could raise its base interest rate by at least another 75 basis points in its two-day policy meeting that will kick off on Tuesday (US time).

Some market watchers are expecting that the Fed would not raise the rate by as high as 100 basis points in consideration of growing economic uncertainty.

Overnight, the Dow Jones Industrial Average gained 0.64 percent, the S&P500 advanced 0.7 percent, and the tech-heavy Nasdaq rose 0.76 percent.

In Seoul, tech stocks were among the lead gainers, with market heavyweight Samsung Electronics advancing 1.06 percent and its rival SK hynix inching up 0.33 percent.

Auto stocks were mixed, with the country's top automaker Hyundai Motor dipping 0.25 percent and its affiliate Kia inching up 0.25 percent. Car parts maker Hyundai Mobis added 1.67 percent.

The local currency was trading at 1,387.8 won against the dollar as of 9:15 a.m., up 5.8 won from the previous session's close. (Yonhap)