Seoul shares open higher on softening US inflation data

South Korean stocks got off to a strong start Monday, as US data pointing to a loosening of inflation boosted investor confidence.

The benchmark Korea Composite Stock Price Index rose 16.91 points, or 0.65 percent, to 2,625.23 in the first 15 minutes of trading.

All three US major stock indexes finished higher Friday, after the personal consumption expenditures price index, an inflation gauge favored by the Federal Reserve, showed it rose 3 percent in June from a year earlier, the smallest rise in more than two years.

It also marked a drop from May's 3.8 percent, showing a downtrend that indicated the Fed's aggressive interest rate hikes are working to pull inflation down to the 2 percent target range.

In Seoul, steel and energy shares drove up the Kospi, while tech blue chips traded mixed.

Steel giant Posco Holdings and its battery component-making affiliate Posco Future M both rose more than 4 percent each. Top energy company SK Innovation jumped more than 7 percent.

Tech heavyweight Samsung Electronics lost 0.4 percent, and chip maker SK hynix fell 1 percent. Leading battery maker LG Energy Solution rose 2 percent.

The local currency was trading at 1,275.6 won against the US dollar at 9:15 a.m., up 1.4 won from Friday's close. (Yonhap)