South Korean stocks advanced to their highest level this year on Thursday, fueled by growing speculation over a rate cut in Asia’s fourth-largest economy and sound economic data from the U.S., analysts said Thursday. The Korean won also rose against the U.S. dollar, snapping its two-day loss.

The benchmark Korea Composite Stock Price Index rose 7.42 points, or 0.37 percent, to 2,020.90, the highest closing of the year. The index rose to as high as 2,025.41 points at one point, but pared gains in late trading. Trading volume was moderate at 318 million shares worth 3.85 trillion won ($3.74 billion), with gainers outpacing losers 467 to 324.

The Federal Reserve’s Beige Book showed on Wednesday (Washington Time) that the world’s largest economy continued to expand.

“Investors are building up confidence that the global economic growth would gather pace,” said Lim Noh-choong, an analyst at I’M Investment & Securities. (Yonhap)