South Korean stocks closed sharply higher Monday, buoyed by expectations of a potential U.S. Federal Reserve interest rate cut next month. 

The rally came after Fed Chair Jerome Powell signaled at last week’s Federal Open Market Committee meeting that the Fed could adjust its policy stance as risks to the economy shift. 

Investor sentiment was also lifted by anticipation of the upcoming Seoul-Washington summit, where major South Korean conglomerates are expected to announce investment pledges, fueling optimism for expanded bilateral industrial cooperation.

The benchmark Korea Composite Stock Price Index(KOSPI) rose 41-point-13 points, or one-point-three percent, Monday to close at three-thousand-209-point-86.

The tech-heavy KOSDAQ also rose, gaining 15-point-51 points, or one-point-98 percent, to close at 798-point-02.

Tech and battery shares led gains, with SK hynix surging three-point-39 percent to 259-thousand-500 won and Samsung Electronics edging up zero-point-14 percent to 71-thousand-500 won. LG Energy Solution rose three-point-four percent, while Samsung SDI added two-point-55 percent. Nuclear and pharmaceutical stocks also advanced, with Doosan Enerbility jumping five-point-95 percent and Hanmi Pharm gaining two-point-47 percent.