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Sunday, April 14, 2024

Kospi gains points, U.S. Fed meeting expected to raise interest rate

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Stocks closed higher Tuesday for a third day, ahead of the U.S. Federal Reserve’s policy meeting later this week. While the won fell against the dollar.

Kospi gained 22.86 points, or 0.91 percent, finishing at 2,524.39. Trading volume was moderate at 691.3 million shares worth 9.79 trillion won ($7.3 billion), with gainers outnumbering decliners 638 to 248.

Foreigners bought a net 341.8 billion won of local equities, with institutions snapping up a net 228.1 billion won. Individual investors sold off a net 551.2 billion won.

U.S. stocks ended nearly flat Monday after JPMorgan Chase & Co. said it is buying First Republic Bank from the Federal Deposit Insurance Corp. in the wake of the collapse of regional banks in the United States.

“The U.S. government and private sector are making efforts to curb the repercussions from the banking crisis, and it’s appropriate to say that it is working positively,” said Han Ji-young, an analyst at Kiwoom Securities.

The Fed is expected to raise the interest rate by another 0.25 percentage point at the end of the two-day Federal Open Market Committee meeting Wednesday in what could potentially be the latest move in its aggressive monetary tightening to tame inflation.

Shares gathered ground across the board in Seoul.

Samsung Electronics rose 0.31 percent to 65,700 won. LG Energy Solution advanced 1.72 percent to 591,000 won.

Posco Future M jumped 5.22 percent to 352,500 won after winning a megadeal to supply cathodes, a key electric vehicle battery material, to LG Energy Solution.

Hyundai Motor climbed 2.03 percent to 201,500 won, and Kia rose 2.84 percent to 86,900 won.

Bio shares closed lower. Samsung Biologics lost 1.79 percent to 767,000 won, and Celltrion fell 0.21 percent to 160,400 won.

The local currency ended at 1,342.10 won against the dollar, up 4.4 won from Friday’s close.

The Korean financial markets were closed Monday for the Labor Day holiday.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 4.6 basis points to 3.335 percent, and the yield on the benchmark 10-year government bonds hiked 15 basis points to 3.570 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]