Seoul Shares Rise Amid Concerns Over Prolonged Interest Rate Increases
Seoul shares opened higher on Friday as investors navigated the absence of major market guidance due to the Thanksgiving holiday in the United States. The Korea Composite Stock Price Index gained 3.38 points, or 0.13 percent, reaching 2,518.34 in the initial 15 minutes of trading.
Market participants have been speculating that the Federal Reserve is reaching the end of its monetary tightening cycle, potentially leading to rate cuts in 2024. However, the latest minutes from the Federal Reserve revealed that officials have no immediate intention to ease the current monetary policy.
In Seoul, large-cap stocks showed a mixed performance. Samsung Electronics, the market bellwether, witnessed a 0.2 percent increase, while SK hynix, the second-largest chipmaker, rose by 0.9 percent. Hyundai Motor, the leading carmaker, climbed 0.3 percent, and LG Chem, a major chemical firm, gained 2.8 percent. Additionally, Posco Holdings, a prominent steelmaker, rose by 0.2 percent.
On the other hand, Korean Air, the national flag carrier, experienced a 0.4 percent decline, along with Korea Aerospace Industries, the country’s sole aircraft manufacturer, and LG Energy Solution, a leading car battery maker, both falling by 0.4 percent and 0.3 percent, respectively.
The local currency, the South Korean Won, was trading at 1,299.55 won against the US dollar, depreciating by 2.05 won compared to the previous session’s close.
As the Federal Reserve’s decision to maintain its current monetary policy raises concerns about prolonged interest rate increases, Seoul shares opened higher amidst uncertainty.
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