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Seoul shares open higher after rout amid recession fears

Sept. 29, 2022 - 09:34 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 Thursday. (Yonhap)

Seoul stocks opened higher tracking overnight Wall Street gains, after plunging to the lowest level in more than two years the previous session on growing recession fears.

The Korean won also rebounded to the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 28.66 points, or 1.32 percent, to 2,197.95 in the first 15 minutes of trading.

The KOSPI ended at 2,169.29 on Wednesday, the lowest since July 20, 2020, amid combative monetary tightening policies in major economies to stifle high inflation. The Korean won also tumbled to a 13-year low against the greenback.

Overnight, US stocks mounted a rally after the Bank of England moved to stabilize its financial markets by buying bonds.

The Dow Jones Industrial Average added 1.88 percent, snapping a six-day losing streak. The S&P 500 rose 1.97 percent, and the tech-heavy Nasdaq Composite went up 2.05 percent.

In Seoul, most top-cap shares traded higher.

Market bellwether Samsung Electronics inched up 0.76 percent, while chip giant SK hynix jumped 1.35 percent.

Battery maker LG Energy Solutions grew 1.15 percent, top automaker Hyundai Motor gained 0.84 percent, and its affiliate Kia also added 0.41 percent.

Major chemical firm LG Chem shed 0.37 percent.

The Korean won had been trading at 1,432.90 won against the US dollar as of 9:15 a.m., up 7 won from the previous session's close. (Yonhap)