KOSPI Retreats on Fed Caution, Consumer Outlook Dip

2025-09-24 01:46 By Mariene Camarillo 1 min. read

The benchmark KOSPI slipped 0.40% to close at 3,472 on Wednesday, retreating from recent gains after US Federal Reserve Chair Jerome Powell said stock prices are "fairly highly valued." Investor sentiment weakened as Powell struck a cautious tone on monetary policy, warning of risks on both sides of the Fed’s mandate.

He stated that cutting rates too quickly risks reigniting inflation, while moving too slowly could raise unemployment, offering little clarity on the timing of the next cut.

On the domestic front, sentiment was further pressured as South Korea’s consumer confidence fell for the first time in six months.

The composite consumer sentiment index slipped to 110.1 in September, down 1.3 points from August, reflecting concerns over an export slowdown following new US tariffs.

Major decliners were LG Energy Solution (-1.12%) and SK Hynix (-1.04%), while Samsung Electronics closed flat.



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