Kospi recovers 2,000-mark over Fed rate cut remark

 

Korea’s benchmark Kospi on Monday rose less than 1 percent, barely recovering past the 2,000-point mark after crashing in the previous session over expectations on an interest rate cut in the US. 

The local currency closed at 1,193.70 won against the US dollar, strengthening 20 won from the previous session’s close.

The benchmark bourse Kospi opened slightly high at 1,997.03 -- rising 10.02 points, or 0.5 percent, from the previous session. It dipped below 1,980 points in the early morning, but then recovered to close at 2,002.51 points.

The tech-heavy Kosdaq surged 2.77 percent to 627.66 points at close as foreign and institutional investors net purchased a combined 229.9 billion won ($193 million) worth of stocks.

Amid the rapid spread of the novel coronavirus, Kospi sank below 2,000 points on Friday for the first time in five months.

Market watchers said the latest rebound came after Fed Chairman Jerome Powell implied a rate cut in response to the sluggish stock market due to the growing coronavirus fears. 

By Choi Jae-hee (cjh@heraldcorp.com)