Seoul’s stock market soared to a new record high on Thursday, defying overnight declines on Wall Street. This robust performance occurred despite signals from the US Federal Reserve hinting at a potential interest rate hike later this year and persistent uncertainty surrounding a US-Iran peace agreement.
The benchmark Korea Composite Stock Price Index (Kospi) advanced by 32.74 points, or 0.37 percent, reaching 8,896.98 by 9:18 a.m.
Major U.S. stock indexes had closed lower the previous night. This downturn followed comments from Fed Chair Kevin Warsh, who suggested an interest rate hike might be necessary this year to stabilize inflation, even after the Fed maintained rates for the fourth consecutive time.
Prominent U.S. technology stocks were among the biggest losers, with industry giants like Microsoft, Apple, and Alphabet all experiencing declines.
The Fed’s two-day policy meeting, the first under its new chief, concluded with interest rates held steady at a range of 3.5 percent to 3.75 percent for the fourth consecutive time.
Globally, geopolitical concerns also weighed on investor sentiment. The Donald Trump administration released a memorandum of understanding with Iran; however, President Trump stressed that it was not a definitive deal, asserting that the United States reserved the right to resume attacks if Iran’s behavior warranted it.
According to Han Ji-young, an analyst at Kiwoom Securities, the Kospi might experience short-term correction pressure. This is largely attributed to its rapid ascent over the past five consecutive trading sessions.
Han further elaborated, “However, this is merely a question of the pace of growth, as the current market remains strongly supported by attractive valuations and robust profit momentum.”
Within the Seoul market, performance among large-cap shares was mixed.
Leading technology firm Samsung Electronics saw a slight decrease of 4.3 percent. In contrast, its rival in the semiconductor industry, SK Hynix, gained 3.29 percent.
Automotive giant Hyundai Motor dipped by 1.78 percent, and battery manufacturer LG Energy Solution declined by 1.92 percent. Meanwhile, defense sector leader Hanwha Aerospace recorded a gain of 0.41 percent.
