Seoul shares rise ahead of U.S. Fed meeting

South Korean shares rose Monday, as investors bet on a U.S. rate cut. The local currency slightly lost ground against the U.S. dollar. The benchmark Korea Composite Stock Price Index added 6.69 points, or 0.25 percent, to close at 2,681.00. Trade volume was moderate at 262.5 million shares worth 8.5 trillion won (US$6.35 billion), with losers outnumbering gainers 534 to 325. Foreign investors ended their six-day selling streak, purchasing a net 239 billion won worth of local shares, while institutions also scooped up 158.5 billion won. Retail investors offloaded a net 416 billion won. An electronic signboard at a Hana Bank dealing room in Seoul shows the benchmark Korea Composite Stock Price Index opened slightly lower on Sept. 2, 2024. The index finished higher for a second consecutive session on the day, closing at 2,681.00. (Yonhap) The index opened in negative terrain with major tech shares suffering losses on a worse-than-expected earnings report from artificial intelligence giant Nvidia last week. "The market has changed its color from inflation-sensitive to economic fundamentals-sensitive," Kiwoom Securities analyst Han Ji-young said. The analyst noted upcoming U.S. jobs data may cause a downturn in the stock market should it fall short of market expectations. "However, unlike in the past, the negative impact on stock prices and the duration of such an impact will likely be limited," Han said. Many market experts forecast global stock rallies following a much-anticipated U.S. rate cut. The U.S. Federal Reserve is set to hold its rate-setting meeting on Sept. 17 and 18 (U.S. time). In Seoul, large caps closed mixed. Market bellwether Samsung Electronics gained 0.13 percent to 74,700 won, with No. 2 chipmaker SK hynix adding 0.17 percent to 174,000 won. Battery makers sharply advanced, with industry leader LG Energy Solution surging 6.19 percent to 412,000 won and its local rival Samsung SDS advancing 1.26 percent to 152,600 won. Top automaker Hyundai Motor, on the other hand, tumbled 3.72 perce nt to 246,000 won, while its smaller affiliate Kia Motors stayed flat at 106,100 won. The local currency was trading at 1,338.4 won against the greenback at 3:30 p.m., down 2.40 won from the previous session. Source: Yonhap News Agency