SEOUL: South Korean stocks experienced a sharp increase on Thursday, buoyed by investor optimism following the U.S. Federal Reserve's indication of potential rate cuts in 2024. The Korea Composite Stock Price Index (KOSPI) rose by 1.34 percent, closing at 2,544.18. The trading session saw a high volume of trade with 522.5 million shares worth 12.78 trillion won (US$9.8 billion), and more gainers than losers.

Foreign investors led the buying spree with a net purchase of 624.2 billion won, while individual investors sold a net 1.33 trillion won, and institutions bought a net 692 billion won. The market rally was particularly noticeable in blue-chip stocks, especially in the semiconductor sector, as noted by Kiwoom Securities analyst Han Ji-young. Top tech firms like Samsung Electronics and SK hynix recorded gains, as did leading battery maker LG Energy Solution. Major online portal operators Naver and Kakao also saw significant increases, along with financial giants KB Financial and Shinhan Financial. The Korean won also strengthened sharply against the U.S. dollar, closing at 1,295.4 won. Bond prices rose as yields on three-year Treasurys and five-year government bonds fell, reflecting the market's positive reaction to the Federal Reserve's rate decision and future outlook.