An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

South Korean stocks rose more than 1 percent Monday, rebounding from the previous session's steep drop, as reviving hopes for another rate cut by the Federal Reserve encouraged foreign buying. The Korean won rose sharply against the US dollar.

The benchmark Korea Composite Stock Price Index added 45.16 points, or 1.33 percent, to close at 3,431.21, ending a three-day losing streak through Friday, when the index lost 2.45 percent.

Trade volume was moderate at 412.8 million shares worth 9.94 trillion won ($7.1 billion), with gainers beating decliners 596 to 269.

Foreign and institutional investors led the bullish mode, buying a net 445.7 billion won and 302.9 billion won worth of shares, respectively. Meanwhile, retail investors dumped a net 747.6 billion won.

Latest US inflation data showed that consumer spending rose in line with market expectations, fueling hopes that the Fed may take another dovish action at its upcoming rate-setting meeting.

On Friday, Wall Street rebounded as the Dow Jones Industrial Average advanced 0.65 percent and the Nasdaq composite rose 0.44 percent.

In Seoul, large-caps finished in positive territory.

Tech shares were among the biggest winners as Samsung Electronics rose 1.08 percent to 84,200 won and SK hynix vaulted 3.71 percent to 349,000 won.

Major shipbuilders HD Korea Shipbuilding & Offshore Engineering and Samsung Heavy Industries advanced 0.63 percent to 400,000 won and 2.4 percent to 21,350 won, respectively.

Retailers and hotel shares were strong on a temporary visa-free program for Chinese group tourists.

Lotte Shopping climbed 0.43 percent to 70,600 won, and Shinsegae gained 1.45 percent to 189,400 won. Hotel Shilla increased 1.13 percent to 53,800 won, and Hanatour Service rose 1.41 percent to 50,300 won.

Leading IT firm Naver jumped 7.02 percent to 274,500 won after its acquisition of Dunamu, the operator of South Korea's largest cryptocurrency exchange, Upbit.

Kakao added 1.69 percent to 60,300 won, rebounding from a recent slide due to growing complaints over its recent update on its popular messenger KakaoTalk.

The local currency was quoted at 1,398.7 won against the greenback at 3:30 p.m., up 13.7 won from the previous session. (Yonhap)