Kospi Rises on Fed Governor's Comments Suggesting No Rate Hike
The Kospi index surged by 1.14% at the open, following a broad rally in U.S. markets after Federal Reserve Governor Christopher Waller indicated support for holding interest rates steady this month. The benchmark rose to 6,650 points amid easing concerns over potential rate hikes and falling odds on prediction markets. This rebound follows earlier declines linked to Middle East tensions. Waller stated he would back maintaining the current federal funds rate range of 3.5% to 3.75% during the Fed's September meeting. The comments contributed to a positive tone across Asian markets, with Japan’s Nikkei and Hong Kong’s Hang Seng also opening higher. U.S. indices like the Dow Jones Industrial Average saw strong gains as well. Attention now shifts to Friday’s nonfarm payrolls report for August, which is expected to show 53,000 new jobs added after a loss in July. Economists suggest continued labor market weakness could push the Fed toward easier monetary policy.
Topics: Fed rate policy Kospi Treasury yields Wall Street rally