FX.co ★ South Korean Shares Rebound on Fed Cut and Chipmakers’ Rally

The KOSPI index saw an increase of 0.7%, reaching approximately 3,438 on Thursday. This uptick recuperated the losses encountered in the previous session, following the U.S. Federal Reserve's anticipated decision to reduce interest rates by 25 basis points. This move set a positive tone for global stock markets, as it was intended to shield the economy from a weakening labor market as well as political and economic uncertainties. Federal Reserve Chair Jerome Powell emphasized that future monetary policy decisions would continue to be influenced by economic data. On the domestic front, the strong performance of major chipmakers was a significant driver, with SK Hynix surging by 4.7% and Samsung Electronics rising by 1.9%, fueled by optimism regarding AI-driven demand. Other large-cap stocks had mixed outcomes; while there were slight advances in the automotive and battery sectors, these gains were counterbalanced by declines in shares of Hanwha Aerospace and KB Financial. Meanwhile, South Korean policymakers reassured the public that fluctuations in global markets are unlikely to have a long-term effect on the Korean economy, highlighting that local financial conditions remain stable.