Kospi rises following hints of rate cut by Fed

Stocks opened higher Thursday as U.S. Federal Reserve Chair Jerome Powell hinted that the rate cut is likely "at some point this year."

Screens in Hana Bank's trading room in central Seoul shows the stock market price as it opens on Thursday. [NEWS1]

Stocks opened higher Thursday as U.S. Federal Reserve Chair Jerome Powell hinted that the rate cut is likely "at some point this year."

The Kospi added 9.77 points, or 0.37 percent, to 2,651.26 in the first 15 minutes of trading.

Overnight, the U.S. stock market closed higher with the Dow Jones Industrial Average rising 0.2 percent and the tech-heavy Nasdaq composite advancing 0.58 percent.

During the testimony delivered before the House of Representatives, Powell said a rate cut is likely to happen if there are more signs that inflation is slowing, although the economy remains uncertain.

In Seoul, Samsung Electronics moved up 0.14 percent and SK hynix rose 0.98 percent.

Pharmaceutical shares also kicked off higher, with Samsung Biologics rising 3.18 percent and Celltrion advancing 0.5 percent.

The local currency was trading at 1,328.6 won against the dollar, down 5.9 won from the previous session's close.

BY LEE SOO-JUNG, YONHAP [lee.soojung1@joongang.co.kr]