South Korean stocks rally ahead of Federal Reserve’s rate decision
2023.10.31 22:30
© Reuters.
In a strong opening on Wednesday, South Korean stocks mirrored Wall Street’s overnight performance, with investors showing renewed interest in tech stocks following a recent dip. The index surged 1.39% to 2,309.56 in early trading, reflecting the positive momentum. This uptick was concurrent with the rise in the US markets, where Dow Jones and rose by 0.38% and 0.48% respectively.
Investors are currently focused on the Federal Reserve’s two-day policy meeting that began on Tuesday. Market participants are keenly observing Fed Chair Jerome Powell’s indications regarding potential rate hikes aimed at achieving a 2% inflation target. The speculation around maintaining steady interest rates has intensified, adding to the market’s volatility.
Top-tier shares in Seoul’s stock market displayed robust growth on Wednesday. Samsung Electronics (KS:), SK hynix (KS:), and POSCO (NYSE:) Holdings were among the companies whose stocks surged. Other companies like LG Energy Solution, Hyundai Motor (OTC:), and Samsung SDI also saw their shares rise. Tech giants Naver, Kia, and Kakao too opened higher.
The positive trend extended to the currency markets as well. The local currency was observed trading at 1,353.55 won against the US dollar. This financial landscape reflects investors’ anticipations for the Federal Reserve’s rate-setting decision and its potential impact on global markets.
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