South Korean stocks closed higher for the second day in a row on Monday. This was due to the growing belief that the US Federal Reserve will pause the interest rate hike in the next month’s policy meeting. This belief was supported by new unemployment data that showed a cooling economy. The Korean won fell against the US dollar.
The benchmark Korea Composite Stock Price Index (Kospi) rose by 0.81 percent to finish at 2,584.55. Trading volume was moderate, with decliners slightly outnumbering gainers.
In response to the unemployment data, an analyst at Kiwoom Securities Co. stated that the concerns about the Fed tightening its policies had been offset. This latest employment data indicates that the labor market is becoming more balanced and that there is less inflationary pressure on wages.
The US unemployment rate in August was 3.8 percent, and wage growth slowed. The August nonfarm payrolls were higher than expected.
These readings show that the Fed’s tightening policy is working, increasing the likelihood that the central bank will pause its interest rate hikes in its September policy meeting.
The majority of major stocks saw gains, driven by tech and chemical blue chips. Market giant Samsung Electronics continued to rise for the second day in a row. However, there were some decliners, including automaker Hyundai Motor and internet portal provider Naver.
The Korean won ended lower against the US dollar.
This information is provided by Yonhap.
>>Join our Facebook Group be part of community. <<