South Korean stocks closed nearly 1 percent higher on Thursday, driven by optimism about a potential US interest rate cut, which lifted investor confidence in the country. The local currency also surged to its highest level against the US dollar in almost two months. The benchmark Korea Composite Stock Price Index rose by 0.83 percent, reaching 2,753 points, with trade volume totaling 510.3 million shares valued at 13 trillion won ($9.66 billion). Foreign investors and institutions purchased a net 426.4 billion won and 593.1 billion won worth of local shares, respectively, counterbalancing a net sale of 964.9 billion won by individuals. The US's lower-than-expected inflation data for April sparked hope that the Federal Reserve would consider lowering key rates later in the year, leading to record highs for Wall Street's main indices and an influx of foreign capital into the Korean stock market. In Seoul, most shares ended the day in positive territory, with major companies like SK hynix and LG Electronics posting gains, while Samsung Electronics and LG Energy Solution experienced declines. The local currency closed at 1,345 won against the US dollar, marking its highest level since March 28.