FX.co ★ Korean Stocks Fall on Chip and Auto Sector Slump

The KOSPI index fell by 0.80% to approximately 4,003 on Thursday, nullifying gains achieved earlier in the week. This decline was largely due to the underperformance of chip and automotive sectors. Key stocks such as Samsung Electronics (-1.15%), SK Hynix (-3.44%), LG Energy Solution (-0.60%), SK Square (-5.15%), KB Financial (-1.14%), and Shinhan Financial (-0.88%) significantly contributed to the downturn. However, there was some relief provided by the gains in Hyundai Motor (3.75%), Samsung Biologics (0.97%), and Doosan Enerbility (0.64%). The overall drop was tempered by speculation of an imminent interest rate cut by the Federal Reserve. A series of underwhelming economic indicators from the US bolstered the belief that the Fed is likely to lower borrowing costs in the upcoming week. Officials have projected a probable 25-basis-point reduction at the December 12 meeting, with continued easing possible in the subsequent year. Currently, futures tied to Fed funds indicate an 89% chance of this reduction, which is an increase from 83.4% the previous week.