(LEAD) Seoul stocks surge from almost 2% to two-week highs due to easing rate hikes

(ATTN: ADDS details in second paragraph, lower bond yield, photo)

Seoul, July 18 (Yonhap News Agency)-South Korean stocks surged nearly 2% on Monday as US Federal Reserves are unlikely to achieve a full rate hike amid growing concerns over a slowdown in the economy. .. The Korean won has risen against the US dollar.

The Korea Composite Stock Index (KOSPI) rose 64.27 points (1.90%) to close at 2,375.25.

The trading volume was modest at 318.99 million shares, worth 690 trillion won ($ 5.31 billion), and the price increase exceeded 778 to 116.

Foreign investors bought a net 6334.5 billion won, offsetting the sale of 426,970 million won and 205 billion won, respectively, by individuals and retailers.

“Recent U.S. data on retail purchases and inflation expectations have eased concerns about sharper rate hikes than expected. Friday’s strong rise on Wall Street and rising futures are positive for locals. He showed his stance. The market. ” SsangYong, an analyst at Mirae Asset Securities, said.

Some have predicted that the Fed could raise the key rate by 1 percentage point to curb high levels of inflation in next week’s session, but Fed officials said it would raise rates by 75 basis points. He said he would stick.

The US consumer price index rose 9.1% year-on-year in June, the highest in 41 years, but the fall in oil prices has eased expectations of the US consumer price index in July.

“The market is likely to remain volatile for some time due to high inflation and prolonged concerns about the recession,” Seo added.

In Seoul, most large-cap stocks closed at highs, with major tech and car stocks driving the rise.

Market giant Samsung Electronics is up 3.17% to 61,900 won, and second chip maker SK Hynix is ​​up 2.33% to 101,000 won.

Hyundai Motor Co., Ltd., a major automaker, posted a bright quarterly earnings forecast of 185,500 won, up 1.09%, and Kia Motor Co., Ltd., an affiliated company, rose 1.26% to 80,100 won.

Internet portal operator Naver is up 6.71% to 246,500 won, and platform giant Cacao is up 3.85% to 72,800 won.

Treasury has also risen. KB Financial Group is up 4.77% to 46,150 won, and Shinhan Financial Group is up 3.74% to 34,650 won.

However, major bio stocks fell, Samsung Biologics fell 0.86 percent to 810,000 won, and pharmaceutical company Celltrion fell 1.88 percent to 183,000 won.

The local currency rose 8.7 won from the closing price on the previous day and closed at 1317.4 won against the US dollar.

Bond prices, which are inversely proportional to yields, closed at a lower price. Yields on 3-year government bonds rose 0.7 basis points to 3.212%, and benchmark 5-year government bond returns rose 1.1 basis points to 3.282%.