FX.co ★ KOSPI Rises on Tech Gains and Fed Policy Optimism

The benchmark KOSPI index climbed 0.53% to approximately 3,332 on Thursday, continuing its week-long rally and setting a new all-time high. This surge was driven by gains in large-cap technology and semiconductor stocks, mirroring Wall Street’s AI-induced growth. The recent publication of US August producer price index figures—which indicated the first decline in four months—has heightened investor expectations of an interest rate cut by the Federal Reserve in the coming week. Currently, futures markets are suggesting a strong likelihood of a 25-basis-point cut, with some traders preparing for a potential 50-basis-point reduction. As these events unfold, market participants are eagerly awaiting Thursday’s Consumer Price Index (CPI) release, which is considered a crucial measure of inflation dynamics and the Federal Reserve’s future policy direction. Significant advancements were observed in Hanwha Aerospace, up 3.52%, and SK Hynix, up 1.48%, while Samsung Electronics experienced a slight decline of 0.14%.