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Kospi opens up 0.74% on hopes of U.S. rate cut

Published: 25 Aug. 2025, 10:26

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Aug. 25. [YONHAP]

Korean stocks kicked off higher Monday as investor sentiment was boosted after U.S. Federal Reserve Chair Jerome Powell hinted at a possible rate cut during the central bank's meeting next month.

The Kospi rose 23.53 points, or 0.74 percent, to 3,192.26 in the first 15 minutes of trading.

On Friday, Wall Street rallied after Powell said, “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” hinting at a possible cut at the Federal Open Market Committee meeting in September.

Investors also waited for the outcome of the upcoming summit between President Lee Jae Myung and U.S. President Donald Trump, which will be held in Washington on Monday.

Korean chipmaker SK hynix gained 1.59 percent, and battery producer LG Energy Solution climbed 1.29 percent. Samsung Electronics, however, edged down 0.14 percent.

Financial shares were also among the winners, with KB Financial moving up 1.48 percent and Shihan Financial rising 0.9 percent.

The local currency was trading at 1,386.7 won against the dollar at 9:15 a.m., weakening 0.5 percent from the previous session at 1,393.65 won.

Yonhap