As the likelihood grew that the United States will hold its benchmark interest rate, Korea's stock market opened higher on the 4th.
The KOSPI index was trading at 6,676.53 as of 9:05 a.m., up 97.05 (1.48%) from the previous trading day.
Foreign investors and institutions were net buyers of 119.1 billion won and 100.8 billion won, respectively. Individuals alone were net sellers of 232.2 billion won. Other corporations, presumed to be treasury shares of Samsung Electronics and SK hynix, were net buyers of 12.4 billion won.
Samsung Electronics(005930) and SK hynix were both up 2%. Most of the top market-cap stocks, including Samsung Electronics(1P), SK Square, and Samsung Electro-Mechanics, were rising.
Overnight, dovish (favoring monetary easing) remarks from senior Federal Reserve officials appeared to ease some concerns about the high interest rates that had weighed on the market.
Christopher Waller, a Fed governor, said he would be willing to support holding the benchmark rate if upcoming inflation data confirm easing price pressures. A day earlier, John Williams, president of the New York Federal Reserve Bank, said the recent surge in U.S. Treasury yields was the result of a strong economy rather than a malfunctioning market, adding that it is necessary to watch price trends carefully.
On the Chicago Mercantile Exchange (CME) FedWatch, the probability of the Fed holding rates in September rose to 49.5% from 36.8% the previous day.
All three major New York stock indexes finished up more than 1%.
Economic indicators were mixed. The yield on the U.S. 10-year Government Bonds edged higher but came down to 4.76%, while international oil prices were still trading around $90.
At the same time, the KOSDAQ index was trading at 804.34, up 14.13 (1.79%) from the previous trading day. With foreign investors alone net buying 17.0 billion won, individuals and institutions were net sellers of 7.5 billion won and 5.5 billion won, respectively. All 10 of the top market-cap stocks, including Alteogen(196170), were rising.