Kospi inches up with Fed's hint at rate cut this year

The Kospi added 6.13 points, or 0.23 percent, to 2,647.62 after U.S. Federal Reserve Chairman Jerome Powell said a rate cut is likely this year.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,647.62 points on Thursday, up 0.23 percent, or 6.13 points, from the previous trading session. [YONHAP]

Stocks closed slightly higher on Thursday after U.S. Federal Reserve Chairman Jerome Powell hinted at a possible rate cut this year, while acknowledging that economic uncertainties still remain. The local currency gained against the U.S. dollar.

The Kospi added 6.13 points, or 0.23 percent, to 2,647.62.

Trade volume was moderate at 447 million shares worth 10.2 trillion won ($7.72 billion), with losers outpacing gainers 591 to 297.

Foreigners offloaded 308 billion won-worth of stocks, while individuals scooped up a net 269 billion won. Institutions sold a net 42.4 billion won.

Powell hinted that a rate cut is likely "at some point this year," alleviating concerns over a delay in a potential rate reduction by the Fed amid lingering inflation woes.

The central bank chief, however, also acknowledged that economic uncertainties still remain, with inflation yet to show signs of a full-fledged slowdown.

"Defense shares also continued to trade higher amid the rising concerns over security following the Russia-Ukraine and Israel-Hamas wars," Kim Dae-joon, a researcher at Korea Investment and Securities, said.

In Seoul, LIG Nex1, a defense company, moved up 5.4 percent to 177,600 won, and Hanwha gained 0.68 percent to 29,750 won.

Samsung Electronics finished 0.96 percent lower to 72,200 won, while SK hynix added 1.23 percent to 164,900 won.

LG Energy Solution gained 3.23 percent to 399,500 won, and Samsung SDI jumped 13.03 percent to 412,000 won.

LG Chem gained 0.34 percent to 443,000 won and SK Innovation jumped 2.68 percent to 118,800 won.

Hyundai Motors lost 0.40 percent to 250,000 won and Kia fell 0.71 percent to 126,100 won.

Foodstuff companies closed lower, with CJ Cheiljedang falling 2.07 percent to 283,500 won and Orion decreasing 2.34 percent to 91,900 won.

The local currency ended at 1,330.9 won against the greenback, down 3.6 won from the previous session's close.

The Kosdaq lost 7.30 points, or 0.84 percent, to close at 863.37.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 0.6 basis points to 3.320 percent, and the return on the benchmark 10-year government bonds lost 4.8 basis points to 4.104 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]