Stocks close higher Wednesday amid expectations Fed may ease monetary tightening

Stocks closed higher Wednesday amid expectations that the U.S. Federal Reserve might ease aggressive monetary tightening in the coming months. The won rose against the dollar.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,418.01 points on Wednesday, up 12.74 points, or 0.53 percent, from the previous trading day. [YONHAP]

Stocks closed higher Wednesday amid expectations that the U.S. Federal Reserve might ease aggressive monetary tightening in the coming months. The won rose against the dollar.

The benchmark Kospi gained 12.74 points, or 0.53 percent, to close at 2,418.01.

Trading volume was moderate at 466.1 million shares worth 7.37 trillion won ($ 5.4 billion), with gainers outnumbering losers 663 to 215.

Foreign investors bought a net 82.9 billion won worth of shares, while institutional offloaded a net 17.5 billion won and retail investors a net 96.3 billion won.

The market opened higher, tracking overnight Wall Street gains, as traders bet that the Fed may not take aggressive monetary tightening, with inflation data showing signs of peaking.

They also seemed to shrug off China's recent upticks in Covid-19 cases and the possibility of tightening virus restrictions that could send shock waves across the global economy.

In Seoul, most large-cap shares closed up.

Samsung Electronics edged up 0.66 percent to end at 61,000 won, and SK hynix closed flat at 85,200 won.

Hyundai Motor added 0.3 percent to 166,000 won and its affiliate Kia inched up 1.69 percent to 66,300 won.

Kakao rose 2.58 percent to close at 55,700 won on news that Saudi Arabia might invest in the group's entertainment unit. Naver added 0.55 percent to 181,500 won.

Among losers, battery maker LG Energy Solution shed 1.75 percent at 561,000 won, and biopharmaceutical firm Celltrion lost 0.85 percent to 175,000 won.

Shipbuilding stocks closed mixed.

Korea Shipbuilding & Offshore Engineering fell 0.13 percent to 78,200 won, while Samsung Heavy Industries added 1.74 percent to close at 5,250 won.

The local currency closed at 1,351.80 won against the dollar, down 4.8 won from the previous session's close.

The Kosdaq increased 13.33 points, or 1.87 percent, to close at 725.59 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 3.0 basis points to 3.859 percent, and the yield on 10-year government bonds gained 1.3 basis points to 3.783 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]