FX.co ★ South Korean Shares Rebound on Fed Cut Hopes

On Tuesday, the benchmark KOSPI index rose by 0.9% to approximately 3,880, recovering from prior losses amid growing anticipation of an imminent interest rate cut by the U.S. Federal Reserve. This shift in investor sentiment followed a significant rebound on Wall Street overnight, as Federal Reserve officials hinted at a more lenient monetary policy, alleviating concerns over stricter financial conditions. Renewed enthusiasm for AI-related investments further bolstered the market, benefiting key Korean technology stocks as apprehensions over high valuations eased. Notably, Samsung Electronics advanced by 2.8%, LG Energy Solution increased by 0.7%, Hyundai Motor gained 1.4%, KB Financial Group rose by 2.2%, Celltrion climbed by 2.3%, and Kia Corporation inched up by 0.5%. Concurrently, domestic confidence strengthened as Korea's consumer sentiment index soared to an eight-year peak, underpinned by the recently concluded U.S. tariff agreement and stronger-than-anticipated GDP growth in the third quarter.