Korean stocks climbed on Monday, tracking gains on Wall Street as markets grew optimistic about potential Federal Reserve rate cuts following Chair Jerome Powell's remarks. The Korean won weakened while government bond yields declined.
The benchmark KOSPI index advanced 0.99% to close at 3200.05 points. Among major stocks, Samsung Electronics remained flat while SK Hynix surged 3.39%. Battery maker LG Energy Solution gained 2.59%.
Fed Chair Powell indicated on Friday that a rate cut at the September meeting was possible, though he stopped short of making a firm commitment. His speech struck a cautious tone, acknowledging increased risks in the labor market while noting that inflation risks persist.
US markets posted strong gains on Friday, with the S&P 500 and Nasdaq Composite rising 1.5% and 1.7% respectively. The Dow Jones Industrial Average jumped 2.2%, hitting an intraday record high.
In individual stock movements, Hyundai Motor edged up 0.11% while Kia Corp declined 0.57%. Steel producer POSCO Holdings climbed 1.83%, and pharmaceutical company Samsung Biologics rose 0.10%.
Of the 934 stocks traded, 586 advanced. Foreign investors were net sellers in the KOSPI market, offloading 31.868 billion won worth of shares.
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