Seoul shares extend gains late Thu. morning on hopes for rate cut by the Fed

Seoul shares extended gains late Thursday morning as investors expect the Federal Reserve's rate cut next week after the release of U.S. inflation data. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.26 percent, or 31.63 points, to 2,545.00 in the first 15 minutes of trading. The U.S. core consumer price index, excluding volatile food and energy costs, for August rose 0.3 percent from a month earlier. The inflation data dashed hopes for a big cut by the U.S. central bank but market participants expect there is likely to be at least a 25-basis point cut, analysts said. Institutions and individuals bought a combined 181 billion won (US$135 million) worth of stocks, exceeding foreign selling valued at 146 billion won. In Seoul, tech and auto stocks led gains. Market bellwether Samsung Electronics rose 0.9 percent, No. 2 chipmaker SK hynix Inc. jumped 6.2 percent, top carmaker Hyundai Motor Co. gained 2.9 percent, and leading battery maker LG Energy Solution Ltd. was up 0.9 percent. Among decliners, leading refiner SK Innovation Co. fell 0.6 percent, state utility Korea Electric Power Corp. declined 0.2 percent, and dominant tobacco company KT and G Corp. shed 0.8 percent. The local currency was trading at 1,339.70 won against the U.S. dollar, down 0.7 won from the previous session. Source: Yonhap News Agency