Kospi rises, Korean won strengthens on Powell’s rate comments

[Photo by Yonhap]

Korean stock markets opened Thursday higher after the U.S. Federal Reserve chief signaled a possibility of slower pace of rate hike.

After opening the day 1.17 percent higher, Kospi ended trading Thursday up 0.3 percent in Seoul. The benchmark traded above 2,500 points early in the morning before narrowing its gains.

Foreigners net bought 74 billion won ($56.8 million) and institutional investors 115.5 billion won, while retail investors net sold 200.3 billion won in the morning.

Kosdaq, tech-savvy secondary bourse, closed the day 1.52 percent higher.

The Korean won is also gaining strength. It opened at 1,301.0 against the U.S. dollar then moved quickly to below 1,300-mark, which was last seen on August 12. It closed the day at 1,299.70.

The big recovery comes as investors welcomed remarks from U.S. Federal Reserve Chair Jerome Powell, who said that the Fed will slow down the pace of interest rate hikes as soon as the December meeting.

U.S stocks showed broad gains, with S&P 500 rising 3.09 percent, Dow Jones Industrial Average 2.18 percent, and Nasdaq 4.41 percent.