Kospi up 0.47% with Fed hint at rate cut

The Kospi added 13.15 points, or 0.47 percent, to 2,794.01 on comments by U.S. Federal Reserve Chairman Jerome Powell that economic data showed "progress."

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,794.01 points on Wednesday, up 0.47 percent, or 13.15 points, from the previous trading session. [YONHAP]

Shares finished higher Wednesday as investor sentiment got a boost from U.S. Federal Reserve chief Jerome Powell's comments about a possible interest rate cut. The local currency traded weaker against the dollar.

The Kospi added 13.15 points, or 0.47 percent, to 2,794.01, rebounding from the previous session's 0.84 percent drop.

Trade volume was slim at 334.2 million shares worth 10.1 trillion won ($7.26 billion), with decliners beating gainers 586 to 269. Foreigners returned to net buyers, scooping up a net 88.7 billion won, and institutions purchased a net 178.3 billion won. Individuals, however, dumped a net 259.1 billion won.

Overnight, Powell said recent economic data has made some "progress," fueling optimism for a rate cut by the U.S. central bank.

In Seoul, battery, auto and bank shares led the upside move.

EV battery maker LG Energy Solution jumped 4.22 percent to 358,000 won, and Samsung SDI advanced 4.27 percent to 366,500 won.

Hyundai Motor rose 1.28 percent to 276,000 won after completing its EV battery plant in Indonesia in cooperation with LG Energy Solution.

Financial shares also closed higher. KB Financial Group increased 1.44 percent to 84,400 won, while Shinhan Financial Group went up 3.23 percent to 51,100 won and Hana Financial Group rose 2.7 percent to 64,600 won.

Chip shares finished mixed, with Samsung Electronics staying flat at 81,800 won, SK hynix gaining 1.72 percent to 236,000 won and Hami Semiconductor falling 1.07 percent to 166,800 won.

Tech shares also closed mixed. Naver fell 0.06 percent to 159,800 won while Kakao added 0.25 percent to 40,100 won.

Among decliners, Celltrion fell 1.46 percent to 181,800 won, Amorepacific dropped 4.30 percent to 151,500 won and Hanwha Ocean declined 3.38 percent to 30,050 won.

The local currency was trading at 1,390.6 won against the dollar as of 3:30 p.m., up 2.4 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government fell 1.1 basis points to 3.158 percent, and the return on the benchmark U.S. 10-year government bonds dropped 3 basis points to 4.433 percent.

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