South Korean stocks increased for two straight sessions Thursday driven by the U.S. Federal Reserve's strong signal for a rate cut next time. The local currency rose sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index increased 6.99 points, or 0.25 percent, to close at 2,777.68, following a 1.19 percent rise the previous day. Trade volume was moderate at 463.9 million shares worth 10.6 trillion won (US$7.75 billion), with gainers outnumbering losers 632 to 247. Foreign investors led the bullish market, scooping up a net 442 billion won worth of local shares, while institutions dumped a net 175.2 billion won and individuals sold a net 300.6 billion won. At its rate-setting meeting Wednesday (U.S. time), the U.S. central bank froze its key rate in the 5.25-5.50 percent range. Chair Jerome Powell said in a press conference a reduction in policy rate "could be on the table" at its upcoming meeting next month if inflation continues to fall. In Seoul, most shares ended in positive territory. Battery shares were strong as industry leader LG Energy Solution rose 2.93 percent to 333,500 won and Samsung SDI jumped 4.54 percent to 334,000 won. Steel giant POSCO Holdings advanced 3.13 percent to 362,500 won, and major zinc smelter Korea Zinc gained 1.03 percent to 489,000 won. Shipbuilders were also among the big winners, with Hanwha Ocean vaulting 6.71 percent to 32,600 won and HD Korea Shipbuilding and Offshore Engineering increasing 2.9 percent to 213,000 won. But chipmakers finished lower. Samsung Electronics, the No. 1 memory chip manufacturer, fell 0.95 percent to 83,100 won, and SK hynix declined 0.67 percent to 193,300 won. The local currency had been trading at 1,366.2 won against the dollar as of 3:30 p.m., up 10.3 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys dropped 2.8 basis points to 2.976 percent, while the return on the benchmark five-year government bonds declined 3.6 basis points to 2.987 percent. Source: Yonhap News Agency
