Seoul shares trimmed earlier gains Thursday morning after U.S. Federal Reserve Chair Jerome Powell reaffirmed rate cuts this year.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 27.77 points, or 1.03 percent, to 2,734.74 as of 11:20 a.m.

The U.S. central bank reiterated it will take a wait-and-see approach before cutting rates this year. But Powell’s view that inflation figures did not materially change the Fed’s overall picture revived an appetite for emerging-market assets.

Institutions and foreigners bought a combined 302 billion won (US$224 million) worth of stocks, offsetting individuals’ stock purchases valued at 288 billion won.

In Seoul, tech, auto and energy stocks advanced.

Market bellwether Samsung Electronics Co. rose 0.8 percent, No. 2 chipmaker SK hynix Inc. jumped 4.3 percent, top carmaker Hyundai Motor Co. gained 3.2 percent, and leading battery maker LG Energy Solution Ltd. was up 0.3 percent.

Among decliners, national flag carrier Korean Air Co. fell 0.9 percent, leading
shipbuilding group HD Hyundai declined 1.1 percent, and leading cosmetics firm Amorepacific Corp. was down 2.7 percent.

The local currency was trading at 1,347.55 won against the U.S. dollar, up 1.35 won from the previous session’s close.

Source: Yonhap News Agency