South Korean shares climbed on Monday as investors anticipated a U.S. rate cut. Meanwhile, the local currency slightly weakened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) increased by 6.69 points, or 0.25%, closing at 2,681.00.
Trade volume was moderate, with 262.5 million shares worth 8.5 trillion won (US$6.35 billion) changing hands. Losers outnumbered gainers 534 to 325.
Foreign investors ended their six-day selling streak, purchasing a net 239 billion won worth of local shares. Institutions also bought 158.5 billion won, while retail investors sold a net 416 billion won.
The index initially opened lower, with major tech shares suffering losses due to a disappointing earnings report from artificial intelligence giant Nvidia last week.
"The market has shifted from being inflation-sensitive to focusing on economic fundamentals," said Han Ji-young, an analyst at Kiwoom Securities.
Han noted that upcoming U.S. jobs data could negatively impact the stock market if it falls short of expectations. However, unlike in the past, the negative impact on stock prices and its duration are likely to be limited.
Many market experts predict global stock rallies following the anticipated U.S. rate cut. The U.S. Federal Reserve is set to hold its rate-setting meeting on September 17 and 18 (U.S. time).
In Seoul, large-cap stocks had mixed results.
Market leader Samsung Electronics gained 0.13% to 74,700 won, while No. 2 chipmaker SK hynix added 0.17% to 174,000 won.
Battery makers saw significant gains, with LG Energy Solution surging 6.19% to 412,000 won and Samsung SDS rising 1.26% to 152,600 won.
However, top automaker Hyundai Motor fell 3.72% to 246,000 won, while its smaller affiliate Kia Motors remained flat at 106,100 won.
The local currency traded at 1,338.4 won against the greenback at 3:30 p.m., down 2.40 won from the previous session.
Bond prices, which move inversely to yields, fell. The yield on three-year Treasurys increased by 3.6 basis points to 2.989%, and the yield on five-year government bonds rose by 3.9 basis points to 3.049%.
