South Korean stocks rose more than 1 percent Monday on rising hopes of a rate cut from the U.S. Federal Reserve.

The benchmark Korea Composite Stock Price Index(KOSPI) rose 45-point-16 points, or one-point-33 percent, on Monday to close at three-thousand-431-point-21.

The latest U.S. inflation data revealed that consumer spending grew in line with market expectations, fueling hopes that the Federal Reserve might maintain a dovish policy in its next rate-setting meeting.

Leading gains on Monday were tech shares and major shipbuilders, with SK hynix vaulting three-point-71 percent, Naver jumping seven-point-02 percent following its takeover of Dunamu and Samsung Heavy Industries climbing two-point-four percent.

The tech-heavy KOSDAQ climbed eleven-point-52 points, or one-point-38 percent, to close at 846-point-71.

The South Korean won strengthened by 13-point-seven won against the U.S. dollar to trade at one-thousand-398-point-seven won as of 3:30 p.m.

The same day, a J.P. Morgan analyst predicted that South Korea's stock benchmark would reach four-thousand within the next 12 months.

Mixo Das, the financial firm's head of Korea equity strategy, cited the nation's strengths in defense, shipbuilding and artificial intelligence as reasons for his assessment while speaking in a session at the Korea Capital Market Conference in Seoul on Monday.

He added that coordinated global monetary easing and the current pattern of investors chasing risky assets and equities were key factors in his outlook.