FX.co ★ South Korean Shares Rise on Fed Cut Hopes, IMF Growth Upgrade

On Wednesday, the KOSPI benchmark index climbed by 1.4% to approximately 3,610, reversing previous session losses. This rebound was fueled by burgeoning optimism surrounding potential rate cuts in the US and an enhanced growth outlook. The prospect of the Federal Reserve easing its policy stance bolstered risk appetite across Asian markets. Further contributing to the positive sentiment, the International Monetary Fund (IMF) increased its 2025 growth forecast for South Korea to 0.9%. This revision was based on a less severe impact from recent US tariff actions and strong export performance. Technological and industrial sectors led the corporate gains, with notable performances from Samsung Electronics, which rose by 1.6%, Hanwha Aerospace, up by 1.1%, Doosan Enerbility, advancing by 7.4%, and KB Financial Group, increasing by 2.6%. However, overarching optimism was subdued by ongoing geopolitical tensions. Investors are watching closely the recent US–China trade measures and Beijing’s retaliatory actions against firms linked to South Korea, concerned that further escalations may hinder supply chains and negatively affect export opportunities for Korean manufacturers.