FX.co ★ South Korean Shares Extend Gains on Fed Cut Bets

On Wednesday, the KOSPI index increased by 1.9%, reaching approximately 3,930, as it recorded its second consecutive day of gains. This upward trend was fueled by expectations of an imminent US interest rate cut. Investors took cues from Wall Street's rally the previous night, buoyed by growing optimism that the Federal Reserve may ease policies by December. Concurrently, a recent survey from the Bank of Korea revealed the highest level of business confidence observed in over a year, supported by ongoing momentum in both manufacturing and consumer-related sectors. This positive economic climate bolstered Korean tech giants, with companies in the semiconductor sector benefiting from robust global demand and a resilient domestic supply chain. Specific movers included Samsung Electronics, which saw a 0.3% rise, LG Energy Solution advancing 2.3%, Hyundai Motor gaining 1.2%, KB Financial Group increasing 0.9%, Shinhan Financial Group up by 1.2%, Kia Corporation inching up 0.5%, and Celltrion climbing 3.0%.