Seoul shares end higher after Fed's rate cut

Seoul shares ended higher Thursday as investors cheered the US Federal Reserve's first rate cut in more than four years. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) rose 0.21 percent, or 5.39 points, to close at 2,580.80.

Trading volume was moderate at 378.78 million shares worth 12.6 trillion won ($9.5 billion), with gainers exceeding decliners 497 to 371.

The Fed cut its overnight lending rate to a range of 4.75 percent to 5 percent as it sees inflation levels are easing from the levels seen two years ago. It also pledged additional rate cuts, which boosted investor sentiment.

"But the (Fed's) big cut has raised concerns over a possible economic recession at the same time, with US stocks closing in the red overnight," said Cho Hyun-ji, an analyst with DB Financial Investment Co.

Foreigners sold a net 1.17 trillion won worth of stocks, exceeding institutions and individuals' stock purchases valued at 1.14 trillion won.

In Seoul, tech stocks were the lead decliners.

Market bellwether Samsung Electronics Co. fell 2 percent to 63,100 won, No. 2 chipmaker SK hynix Inc. plunged 6.1 percent to 152,800 won, leading discount store chain E-Mart Inc. shed 3.6 percent to 61,900 won, and leading battery maker LG Energy Solution Ltd. was down 2 percent to 391,500 won.

SK hynix plunged after Morgan Stanley cut its rating on the chipmaker to underweight from overweight due to its weakening pricing power.

Among gainers, top carmaker Hyundai Motor Co. rose 3.8 percent to 246,000 won, national flag carrier Korean Air Co. climbed 0.9 percent to 22,600 won, and leading refiner SK Innovation Co. was up 1.8 percent to 112,700 won.

The local currency traded at 1,329 won against the dollar at 3:30 p.m., up 0.5 won from the previous session. (Yonhap)