FX.co ★ South Korean Shares Rise on Fed Rate Cut Optimism

The KOSPI index experienced an increase of 0.22%, reaching approximately 4,108 on Monday, continuing its upward trajectory as market participants look ahead to the U.S. Federal Reserve's policy decision this week. Anticipation builds for the Fed's anticipated interest rate reduction of 0.25% during the two-day meeting ending Tuesday. Performance among large-cap stocks was varied: Samsung Electronics rose by 0.37%, LG Energy Solution by 2.82%, and Hanwha Aerospace by 2.35%, contributing to the gains. Conversely, SK Hynix fell by 1.47%, Doosan Enerbility by 4.17%, KB Financial by 1.91%, and Shinhan Financial by 2.49%. LG Energy Solution shares saw an upturn following the announcement of a significant seven-year supply agreement, valued at KRW 2.06 trillion, with Mercedes-Benz AG. Additionally, Samsung Electronics shares gained strength after market data suggested the company is poised to reclaim its position as the global leader in DRAM sales in the fourth quarter. Meanwhile, shares in financial services declined, influenced by predictions of decreased interest income this year, which is expected to drop by 4% to a cumulative KRW 101.47 trillion—the first annual decline for major financial institutions in five years.