South Korean Shares Rise on Fed Rate Cut

The benchmark KOSPI index increased by 0.4% to approximately 4,150 on Thursday, bouncing back from losses experienced in the prior session. This recovery was largely attributed to improved market sentiment following the US Federal Reserve's decision to reduce interest rates. The Fed cut rates by 25 basis points and indicated a potential pause in further reductions, relieving pressure on yields and boosting demand for growth-focused equities. This more favorable external environment encouraged foreign investment, particularly in large-cap technology stocks. Samsung Electronics saw an increase of over 1%, which stabilized the index and mitigated weaknesses in certain semiconductor stocks, notably after SK Hynix was placed under a heightened trading alert that temporarily restricted margin buying. Additional support stemmed from the currency markets, with a stronger Korean won against the dollar attracting foreign capital inflows and enhancing overall trading stability. Other notable gains included Samsung Biologics (+1.0%), Doosan Enerbility (+2.5%), Kia Corp (+0.9%), and KB Financial Group (+1.5%). In contrast, SK Hynix (-0.5%) and Hyundai Motor (-0.4%) experienced declines.