KOSPI Rises 0.4% on Fed Rate Cut and Foreign Investment

According to data from TradingEconomics, the benchmark KOSPI index rose by 0.4% to around 4,150 points on Thursday, recovering from losses in the previous session due to improved investor sentiment following the U.S. Federal Reserve's decision to cut interest rates.

The Fed reduced the interest rate by 25 basis points and indicated a potential pause in further cuts, alleviating pressure on yields and supporting demand for growth stocks, particularly large-cap technology stocks. This more supportive external environment encouraged foreign investors to increase their purchases.

Samsung Electronics saw an increase of over 1%, contributing to the index's rise and offsetting some weakness in chip companies, especially after SK Hynix was placed on a strict trading watchlist, temporarily limiting margin purchases.

The market also received additional support from currency movements, as the appreciation of the Korean won against the dollar attracted foreign inflows and provided greater stability in trading conditions.

Among the rising stocks:

• Samsung Biologics (+1.0%)

• Doosan Enerbility (+2.5%)

• Kia Corp (+0.9%)

• KB Financial Group (+1.5%)

Meanwhile, slight declines were recorded in:

• SK Hynix (–0.5%)

• Hyundai Motor (–0.4%)