Seoul shares opened higher on Friday, following overnight gains on Wall Street, after dovish remarks from a Federal Reserve official eased investor worries about further interest rate hikes in the United States.

As of 9:16 a.m., the benchmark Korea Composite Stock Price Index (KOSPI) was up 96.9 points, or 1.47 percent, at 6,676.38.

The gains in Seoul tracked a strong session on Wall Street, where the Dow Jones Industrial Average rose 1.18 percent overnight, the S&P 500 gained 1.06 percent, and the tech-heavy Nasdaq Composite advanced 1.4 percent. U.S. monetary policy is a key driver for Korean markets because U.S. rate expectations influence global risk appetite, foreign capital flows into Seoul-listed stocks, and the dollar-won exchange rate, which in turn affects the overseas earnings of Korean exporters.

Investor sentiment improved after Federal Reserve Gov. Christopher Waller signaled a cautious approach to additional monetary tightening, easing concerns that the U.S. central bank could resume raising rates. Waller, a permanent voting member of the Fed's rate-setting Federal Open Market Committee, is among the central bank officials whose comments are closely watched by markets for signals on the direction of U.S. monetary policy.

In the Seoul market, most large-capitalization stocks were trading higher in early dealings. Chip giant Samsung Electronics rose 1.8 percent, while its rival SK hynix added 2.32 percent. Semiconductor makers are major weights on the KOSPI and are sensitive to shifts in global tech demand and U.S. rate expectations, making their early gains a common gauge of broader market direction.

Top automaker Hyundai Motor was up 1.17 percent, battery maker LG Energy Solution climbed 1.92 percent, and defense company Hanwha Aerospace advanced 1.34 percent.

In the foreign exchange market, the Korean won was quoted at 1,356.7 against the U.S. dollar as of 9:16 a.m., up 0.8 won from the previous stock trading session. (Yonhap)

Source: Korea Herald Business