Seoul stocks advance on Fed's comments over tapering

South Korean stocks advanced Thursday, as the US Federal Reserve signaled "patience" in raising interest rates. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.51 points, or 0.25 percent, to close at 2,983.22 points.

Trading volume was moderate at about 759 million shares worth some 14.4 trillion won ($12.2 billion), with losers outnumbering gainers 580 to 295.

Foreigners bought a net 326 billion won, while retail investors sold 655 billion won. Institutions purchased a net 317 billion won.

The key index came off to a bullish start.

Overnight, the tech-heavy Nasdaq composite added 1.04 percent, and the Dow Jones Industrial Average gained 0.29 percent, as the Federal Reserve said it will start to taper its massive asset purchases later this month amid the economic recovery.

At a news conference, Fed Chair Jerome Powell said Wednesday (local time) the US central bank would be "patient" before hiking the benchmark interest rate.

"The KOSPI seems to have received a positive impact from the accommodative FOMC meeting results (about the interest rates)," said Daeshin Securities analyst Lee Kyung-min.

Market bellwether Samsung Electronics increased 0.28 percent to 70,600 won, No. 2 chipmaker SK hynix advanced 0.47 percent to 106,000 won, and internet portal operator Naver climbed 2.24 percent to 411,500 won.

Leading car battery firm LG Chem gained 0.77 percent to 790,000 won, and Hyundai Motor, the country's largest carmaker, moved up 2.64 percent to 214,000 won.

Kakao Pay, the mobile payment service arm of Kakao Corp., South Korea's top messenger app, plunged 12.44 percent to 169,000 won on its second day of trading on profit-taking.

The local currency closed at 1,182.6 won against the US dollar, down 1 won from the previous session's close. (Yonhap)