Shares leap as Fed drops rate cut hints for 2024

Shares ended much higher on Thursday as investors scooped up major tech shares while cheering the U.S. Federal Reserve's hint over rate cuts in 2024. The local currency sharply rose in value against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,544.88 points on Thursday, up 1.36 percent, or 34.22 points, from the previous trading session. [YONHAP]

Shares ended much higher on Thursday as investors scooped up major tech shares while cheering the U.S. Federal Reserve's hint over rate cuts in 2024. The local currency sharply rose in value against the dollar.

The benchmark Kospi shot up 33.52 points, or 1.34 percent, to close at 2,544.18.

The Kosdaq rose 11.28 points, or 1.36 percent, to close at 840.59.

Trade volume was high at 522.5 million shares worth 12.78 trillion won ($9.8 billion), with winners outpacing losers 463 to 418.

Foreigners bought a net 624.2 billion won, while individuals dumped a net 1.33 trillion won. Institutions bought a net 692 billion won.

Investors scooped up blue chips after the Federal Reserve announced its decision to keep its rate between 5.25 and 5.50 percent, and hinted that its hiking campaign may be near or at an end.

"Blue chip stocks, particularly in the semiconductor sector, gained momentum fueled by increased foreign buying," said Han Ji-young, an analyst from Kiwoom Securities.

Tech shares closed higher. Samsung Electronics shot up 0.41 percent to 73,100 won as investors sought after undervalued blue chips.

Chipmaker SK hynix moved up 4.19 percent to 136,700 won and battery maker LG Energy Solution gained 3.05 percent to 422,500 won.

Samsung SDI gained 4.42 percent to 464,000 won and Posco Future M shot up 7.53 percent to 350,000 won.

Naver gained 4.45 percent to 223,000 won, with Kakao also jumping 6.68 percent to 54,300 won.

KB Financial moved up 0.78 percent to 51,900 won, and Shinhan Financial climbed 2.29 percent to 37,900 won.

Pharmaceutical firms closed mixed, with Samsung Biologics falling 0.43 percent to 698,000 won, while Celltrion climbed 2.11 percent to 183,500 won.

Car manufactures closed lower, with Hyundai dropping 0.11 percent to 184,800 won and Kia falling 0.23 percent to 87,200 won.

The local currency closed at 1,295.4 won against the dollar, down 24.5 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 20.9 points to 3.256 percent, and the return on the benchmark U.S. 10-year government bonds fell 17.9 points to 4.023 percent.

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