FX.co ★ KOSPI Rallies to Nine-Month High

On Thursday, the benchmark KOSPI Index advanced by 1.4%, reaching approximately 2,707 points. This rally marked its second consecutive session of gains, bringing the index to its highest level in nine months. The uplift followed a widely anticipated rate cut by the Bank of Korea, which reduced its policy interest rate by 25 basis points to 2.50% during its May 2025 meeting. This adjustment represents the lowest rate since August 2022 and is the fourth consecutive cut in the current cycle of monetary easing, prompted by increasing concerns over stagnant economic growth. Additionally, the Bank of Korea significantly lowered its 2025 growth projection to 0.8%, attributing the revision to weak domestic demand, sluggish exports, and uncertainties stemming from U.S. tariff policies. Contributing further to the positive market sentiment was a decision by a U.S. trade court, which invalidated the Trump-era global tariffs, deeming them illegal and ordering their removal. Leading the index, sectors such as shipbuilding and automotive showed strong performances with Hyundai Heavy Industries rising by 3.1% and Hyundai Motors up by 1.7%. Chipmaker SK Hynix also recorded notable gains, up by 1.4%, following strong earnings reported by U.S. counterpart Nvidia.