Seoul shares open higher on rate cut hopes

Seoul shares opened higher Wednesday, following a mixed close on Wall Street, as investors expect the Federal Reserve may begin a rate cutting cycle later this year. The benchmark Korea Composite Stock Price Index (KOSPI) added 5.20 points, or 0.19 percent, to 2,743.39 in the first 15 minutes of trading. Overnight, the Dow Jones Industrial Average rose 0.5 percent to 40,743.33 points, but the tech-heavy Nasdaq fell 1.3 percent to 17,147.42. This week, all eyes are on the Fed's policy decision on Wednesday (U.S. time) and earnings results of big tech firms, such as Apple Inc. and Amazon.com Inc. With signs of cooling inflation, the U.S. central bank is widely expected to cut rates as early as in September. In Seoul, auto and tech stocks led gains. Market behemoth Samsung Electronics Co. rose 1.2 percent, top carmaker Hyundai Motor Co. climbed 0.6 percent, leading auto parts maker Hyundai Mobis Co. gained 0.2 percent and cosmetics firm Amorepacific Corp. was up 4.4 percent. Among decliners, leading batt ery maker LG Energy Solution Ltd. fell 1.4 percent, steelmaker POSCO Holdings lost 1.7 percent and national flag carrier Korean Air Co. shed 0.2 percent. The local currency was trading at 1,384.05 won against the U.S. dollar, up 1.25 won from the previous session's close. Source: Yonhap News Agency