Stocks open higher on hopes Fed is done with rate hikes

Shares opened higher Monday amid increasing hopes the U.S. Federal Reserve is set to end its rate-hike cycle.

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets close on Friday. [YONHAP]

Shares opened higher Monday amid increasing hopes the U.S. Federal Reserve is set to end its rate-hike cycle.

The Kospi rose 14.43 points, or 0.58 percent, to 2,519.44 in the first 15 minutes of trading.

On Friday, all three major U.S. indexes rallied on growing optimism that the Federal Reserve is done raising interest rates.

The S&P 500 rose 0.6 percent to hit its highest level in over a year, the Dow Jones Industrial Average jumped 0.8 percent, and the tech-heavy Nasdaq Composite gained 0.6 percent.

Fed Chair Jerome Powell has said the Fed's monetary policy is slowing the U.S. economy as expected, with its policy rate "well into restrictive territory."

In Seoul, most large-cap stocks started in positive terrain.

Samsung Electronics jumped 1.11 percent, and SK hynix climbed 1.13 percent.

LG Energy Solution rose 0.35 percent, and Samsung SDI and Posco Future M added 0.78 percent and 1.75 percent, respectively.

SK Innovation soared 2.38 percent.

IT stocks also gained ground, with Naver up 1.21 percent and Kakao up 1.01 percent.

But auto shares were mixed, with Hyundai Motor flat and Kia down 0.58 percent.

LG Chem retreated 0.82 percent.

The local currency was trading at 1,296.20 won against the dollar, down 9.60 won from the previous session's close.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]