Stocks rise in response to Wall Street momentum

Shares closed slightly higher Tuesday tracking overnight Wall Street gains and on expectations the U.S. Federal Reserve will start its rate-cutting cycle. The local currency fell in value against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,568.55 points on Tuesday, up 0.07 percent, or 1.69 points, from the previous trading session. [YONHAP]

Shares closed slightly higher Tuesday tracking overnight Wall Street gains and on expectations the U.S. Federal Reserve will start its rate-cutting cycle. The local currency fell in value against the dollar.

The benchmark Kospi gained 1.69 points, or 0.07 percent, to close at 2,568.55.

The Kosdaq added 7.34 points, or 0.86 percent, to close at 858.30.

Trade volume was light at 364.2 million shares worth 8.06 trillion won ($6.16 billion). Losers, however, outpaced winners 523 to 361.

Overnight, the S&P 500 gained 0.5 percent to continue its weekslong rally and the Nasdaq 100 climbed 0.6 percent to hit a record high for the second consecutive session. The Dow Jones Industrial Average closed flat.

Last week, the Fed kept its rate unchanged and hinted at possible cuts for 2024.

"It appears that the U.S. Federal Reserve is adopting an attitude receptive to the anticipation of rate cuts in the financial markets," said Roh Dong-kil, an analyst at Shinhan Securities.

He added that the outlook for U.S. interest rate cuts has been "further strengthened."

In Seoul, tech and battery shares led the overall gains, with Samsung Electronics adding 0.69 percent to end at 73,400 won and LG Energy Solution rising 0.95 percent to 426,000 won.

Automaker Hyundai Motor also inched up 0.10 percent to 192,200 won and refiner SK Innovation climbed 0.95 percent to 138,800 won.

Shipping company HMM, which is being acquired by food company Harim Group, gained 5.07 percent to end at 18,430 won.

Posco Holdings gained 1.33 percent to 496,000 won while its affiliate Posco Future M dropped 1.37 percent to end at 360,500 won.

IT stocks lost ground, with internet portal operator Naver down 0.22 percent to finish at 222,500 won and Kakao slipping 0.19 percent to 53,800 won.

The local currency closed at 1,307.80 won against the dollar, up 10.60 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 1.9 points to 3.294 percent, and the return on the benchmark U.S. 10-year government bonds added 2.5 points to 3.937 percent.

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