Seoul: South Korean stocks experienced a significant rise on Monday, climbing over 1 percent as renewed hopes for another rate cut by the Federal Reserve spurred foreign investment. The Korean won also increased in value against the U.S. dollar.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) gained 45.16 points, or 1.33 percent, closing at 3,431.21. This upturn marked the end of a three-day losing streak, during which the index had dropped by 2.45 percent.

The trading session saw moderate activity, with 412.8 million shares exchanged, valued at 9.94 trillion won (approximately US$7.1 billion). The market recorded more gainers than decliners, with 596 stocks rising compared to 269 falling.

Foreign and institutional investors were instrumental in the market's positive trend, purchasing a net total of 445.7 billion won and 302.9 billion won worth of shares, respectively. Conversely, retail investors sold off a net 747.6 billion won in shares.

Recent U.S. inflation data indicated that consumer spending aligned with market expectations, raising optimism for a potential dovish move by the Fed at its forthcoming rate-setting meeting.

The previous Friday saw Wall Street rebound, with the Dow Jones Industrial Average increasing by 0.65 percent and the Nasdaq composite rising by 0.44 percent.

In Seoul, large-cap stocks ended positively, particularly in the tech sector. Samsung Electronics saw an increase of 1.08 percent to 84,200 won, while SK hynix surged by 3.71 percent to 349,000 won.

Major shipbuilders also gained, with HD Korea Shipbuilding and Offshore Engineering rising by 0.63 percent to 400,000 won, and Samsung Heavy Industries climbing 2.4 percent to 21,350 won.

Retail and hotel stocks benefited from a temporary visa-free program for Chinese group tourists. Lotte Shopping increased by 0.43 percent to 70,600 won, Shinsegae rose by 1.45 percent to 189,400 won, Hotel Shilla grew by 1.13 percent to 53,800 won, and Hanatour Service advanced by 1.41 percent to 50,300 won.

Leading IT company Naver experienced a notable increase of 7.02 percent to 274,500 won following its acquisition of Dunamu, the operator of South Korea's largest cryptocurrency exchange, Upbit. Kakao also saw a rise of 1.69 percent to 60,300 won, recovering from a recent decline due to user dissatisfaction with an update to its popular messenger app, KakaoTalk.

The local currency was valued at 1,398.7 won against the U.S. dollar at 3:30 p.m., an increase of 13.7 won from the previous session.