FX.co ★ South Korea Shares Hit Near 4-Year High

On Thursday, the benchmark KOSPI rose by 0.7%, reaching approximately 3,155, marking its strongest level since September 2021. Investor optimism surrounding potential mandatory share buyback policies contributed to sustaining this momentum. These policies have continued to draw in retail investors, despite persistent foreign outflows caused by global uncertainties. The Bank of Korea opted to maintain its base interest rate at 2.50%, following a 25-basis-point reduction in May. This decision reflects a careful approach due to rising household debt and economic challenges stemming from U.S. tariffs. On the corporate side, the gains were significantly bolstered by a global surge in chip stocks, triggered by a rise in Nvidia's shares. Key index players such as SK Hynix (up by 1.6%), Samsung Electronics (up by 1.0%), and LG Energy Solutions (up by 1.6%) also contributed to this positive trend.