Seoul shares open sharply higher on US rate cut
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Friday. (Yonhap)
South Korean stocks opened sharply higher, tracking overnight gains on Wall Street, after the US Federal Reserve lowered its benchmark interest rate by a quarter-percentage point. The Korean won also sharply gained against the greenback.
The benchmark Korea Composite Stock Price Index added 25.57 points, or 1 percent, to 2,590.2 in the first 15 minutes of trading.
The rate cut marked the second consecutive reduction following a 50-basis-point cut in September. The move came after Republican flag-bearer Donald Trump won in Tuesday's presidential election.
Overnight the tech-heavy Nasdaq Composite increased 1.51 percent, and the S&P 500 went up 0.74 percent, closing at a record-high level. The Dow Jones Industrial Average closed nearly unchanged.
In Seoul, top tech giant Samsung Electronics rose 0.87 percent, and No. 2 chipmaker SK hynix added 1.82 percent.
Leading battery maker LG Energy Solution gained 4.02 percent, and Samsung SDI increased 1.39 percent.
Carmakers also opened higher, with Hyundai Motor moving up 0.48 percent and its sister Kia adding 0.74 percent. Auto parts maker Hyundai Mobis climbed 1.88 percent.
The local currency was trading at 1,384.9 won against the greenback, up 11.7 won from the previous session. (Yonhap)
