South Korean stocks closed slightly higher Monday amid expectations the U.S. Federal Reserve will start its rate-cutting cycle in 2024. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 3.3 points, or 0.13 percent, to close at 2,566.86.
Trade volume was light at 377.2 million shares worth 10.02 trillion won (US$7.73 billion), with winners outpacing losers 453 to 427.
Last week, the Fed kept its rate unchanged and hinted at possible cuts for 2024.
"As the U.S. Federal Open Market Committee this month hinted toward the end of the latest interest rate hike cycle to raise anticipations for rate cuts next year, we may see an earlier-than-expected upward trajectory on the KOSPI," Lee Kyung-min, an analyst at Daeshin Securities, said.
Lee added that the KOSPI is likely to continue its upward momentum until the early part of the first quarter of 2024.
Battery-related shares led the overall gains, with POSCO Future M adding 1.39 percent to end at 365,500 won and Ecopro Materials surging 26.04 percent to 213,000 won.
Top container shipper HMM soared 14.12 percent to 17,450 won over expectations that its creditors may soon announce a preferred bidder to take over the company under a debt restructuring scheme.
Steelmakers also finished higher, with industry leader POSCO Holdings rising 1.98 percent to 489,500 won while chemical firms also enjoyed gains, with industry leader LG Chem adding 1.01 percent to finish at 498,000 won.
Samsung Electronics, however, slid 0.55 percent to 72,900 won along with other tech shares. Top automaker Hyundai Motor and leading refiner SK Innovation also shed 0.41 percent and 0.79 percent to finish at 192,000 won and 137,000 won, respectively.
The local currency closed at 1,297.20 won against the greenback, down 0.70 won from the previous session's close.
Source: Yonhap News Agency