SEOUL, Sept. 4 (Yonhap) — South Korean stocks closed higher for a second consecutive day on Monday, buoyed by the expectation that the U.S. Federal Reserve will put a hold on its interest rate hikes at its next policy meeting, following the release of data showing a cooling economy. The local currency weakened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) increased by 20.84 points, or 0.81 percent, to close at 2,584.55. Trading volume was moderate, with 337.3 million shares worth 8.57 trillion won (US$6.49 billion) changing hands, with falling stocks outnumbering rising ones 432 to 431.
“Jobs data offset worries about additional tightening by the Fed,” said Han Ji-young, an analyst at Kiwoom Securities Co. “The recent moderate employment data shows that the imbalance in the labor market is easing and that there has been less inflationary pressure on wages,” Han added.
The U.S. unemployment rate jumped to 3.8 percent in August, the Labor Department said Friday (local time), and wage growth slowed. The August nonfarm payrolls were 187,000, increasing from last month and more than the market had expected.
The readings were taken as a sign that the Fed’s aggressive tightening policy is working, increasing the likelihood the central bank will pause its interest rate hikes in its September policy meeting.
The majority of major stocks gained ground, with tech and chemical blue chips pushing up the KOSPI. Market leader Samsung Electronics rose 0.28 percent to 71,200 won, extending its rally for the second straight trading session. Top battery maker LG Energy Solution climbed 1.53 percent to 530,000 won. Steelmaker POSCO Holdings jumped 5.36 percent to 590,000 won, and leading energy company SK Innovation advanced 1.99 percent to 179,500 won.
No. 1 automaker Hyundai Motor was among the decliners, edging down 0.05 percent to 187,300 won. Internet portal provider Naver fell 1.4 percent to 211,500 won.
The Korean won ended at 1,319.80 won against the U.S. dollar, down 1.0 won from Friday’s close.
elly@yna.co.kr
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