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Seoul shares up for 3rd day on U.S. rate-cut hope

Published: 25 Aug. 2025, 17:46

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,209.86 points on Aug. 25, up 41.13 points, or 1.3 percent, from the previous trading session. [NEWS1]

Shares jumped more than 1 percent on Monday after U.S. Federal Reserve Chair Jerome Powell hinted at a possible rate cut during the central bank's meeting next month. The won sharply gained against the dollar.

The benchmark Kospi added 41.13 points, or 1.3 percent, to close at 3,209.86, extending its winning streak to a third day.

Trade volume was light at 217.3 million shares worth 7.91 trillion won ($5.71 billion), with gainers beating losers 598 to 271.

Foreigners bought a net of 26.7 billion won, while individuals off-loaded a net of 386.9 billion won. Institutions purchased a net of 251.9 billion won.

Last week, Powell hinted at a possible cut at the Federal Open Market Committee meeting in September, noting, “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

Investors also awaited the outcome of the summit between Seoul and Washington slated for Monday, with Korea business tycoons widely expected to unveil investment pledges on the sidelines of the meeting.

"Reflecting hopes for industrial cooperation [between Korea and the United States], nuclear energy, chip and pharmaceutical shares gained ground," Lee Kyoung-min, an analyst at Daishin Securities, said.

Top tech giant Samsung Electronics rose 0.14 percent to 71,500 won, and SK hynix soared 3.39 percent to 259,500 won.

Battery makers were also among the major winners, with LG Energy Solution jumping 3.4 percent to 380,000 won and Samsung SDI rising 2.55 percent to 221,500 won.

Nuclear power plant builder Doosan Enerbility jumped 5.95 percent to 65,900 won.

Pharmaceutical company Celltrion rose 0.29 percent to 174,300 won, and Hanmi Pharm climbed 2.47 percent to 290,000 won.

Financial firms also traded bullishly amid the rate cut hope. KB Financial added 1.75 percent to 110,300 won, and Hana Financial gained 0.36 percent to 82,600 won.

The local currency was quoted at 1,384.7 won against the greenback at 3:30 p.m., down 0.64 percent from the previous session's quote of 1,393.65 won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 2.2 basis points to 2.434 percent, and the return on the benchmark five-year government bonds went down 2.2 basis points to 2.602 percent.

Yonhap