Seoul: South Korean stocks opened higher on Tuesday, tracking overnight gains on Wall Street, amid growing expectations of the Federal Reserve's interest rate cut and market-friendly tax reform measures. The benchmark Korea Composite Stock Price Index (KOSPI) added 4.88 points, or 0.15 percent, to 3,224.47 in the first 15 minutes of trading.
According to Yonhap News Agency, U.S. stocks gathered ground overnight as a weaker-than-expected August jobs report reinforced expectations that the Fed would start reducing rates soon. The Dow Jones Industrial Average rose 0.25 percent, and the tech-heavy Nasdaq composite gained 0.45 percent. The S and P 500 index went up 0.21 percent.
Investors also welcomed the news that Finance Minister Koo Yun-cheol on Monday hinted at the possibility of revising the government's earlier proposal on the criteria for major shareholders subject to capital gains tax on stock transactions. The finance ministry had previously proposed lowering the threshold for capital gains tax on stock holdings from 5 billion won (US$3.61 million) to 1 billion won, a move that has drawn criticism from investors.
Top-cap shares opened mixed. Market bellwether Samsung Electronics increased 0.29 percent, and chip giant SK hynix edged up 0.18 percent. However, leading battery maker LG Energy Solution remained unchanged, and nuclear power plant manufacturer Doosan Enerbility retreated 0.99 percent. Defense giant Hanwha Aerospace dipped 0.95 percent.
Major bio company Samsung Biologics grew 0.48 percent, while Celltrion lost 0.29 percent. Leading shipbuilder HD Hyundai Heavy shed 0.2 percent, but its rival Hanwha Ocean jumped 0.99 percent.
Automakers opened higher, with top automaker Hyundai Motor climbing 0.69 percent, and its sister affiliate Kia adding 0.19 percent. Leading financial firm KB Financial Group advanced 0.66 percent, and major steelmaker POSCO Holdings rose 1.07 percent.
The local currency was trading at 1,385.45 won against the greenback at 9:15 a.m., up 5.15 won from the previous session.