Kospi opens 1.2% higher after positive U.S. inflation data

Shares opened higher Thursday, tracking tech-led gains on Wall Street, as investors expect the Federal Reserve's rate cut after the release of U.S. inflation data.

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Wednesday. [YONHAP]

Shares opened higher Thursday, tracking tech-led gains on Wall Street, as investors expect the Federal Reserve's rate cut after the release of U.S. inflation data.

The benchmark Kospi rose 1.2 percent, or 30.17 points, to 2,543.54 in the first 15 minutes of trading.

In August, the U.S. core consumer price index, excluding volatile food and energy costs, rose 0.3 percent from July.

The inflation data dashed hopes for a big cut by the Fed next week but market participants expect there is likely to be at least a 25-basis point cut, analysts said.

In Seoul, tech and auto stocks led gains.

Samsung Electronics rose 2.2 percent, chipmaker SK hynix jumped 6.2 percent, carmaker Hyundai Motor gained 2.7 percent and LG Chem was up 2.2 percent.

Among decliners, battery maker LG Energy Solution fell 0.3 percent, refiner SK Innovation declined 0.4 percent, and tobacco company KT&G shed 1.1 percent.

The local currency was trading at 1,341.75 won against the dollar, up 2.8 won from the previous session.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]