South Korean Shares End Little Changed

The benchmark KOSPI edged down 0.04% to close at 6,715 on Thursday, ending nearly flat from the previous session as investors weighed the Federal Reserve’s first rate hike in more than three years. The Fed raised its policy rate by 25bp to 3.75%-4.00% and signaled another increase could come later this year, limiting the index’s advance despite the move being largely priced in. Additionally, foreign investors extended their net selling streak to seven sessions. Individual stocks were mixed, with Samsung Electronics (-0.20%), SK hynix (-0.85%), SK Square (-1.32%), and LG Energy Solution (-0.86%) declining, while KB Financial Group (1.30%), Doosan Enerbility (1.91%), and Hanwha Aerospace (3.89%) gained. Meanwhile, Brent crude fell nearly 3% to around $105 a barrel as concerns over oil supply disruptions eased, reducing some of the drag from elevated energy costs.

The benchmark KOSPI edged up to around 6,755 on Thursday, extending gains from the previous session as the Fed’s rate hike was largely priced in. The Fed raised its policy rate by 25bp to 3.75%-4.00%, its first increase since 2023, and signaled another hike could come later this year. The move widened the US-Korea rate gap to as much as 1 percentage point, although Korean authorities said its market impact should be limited as the decision was already reflected in asset prices. At the same time, easing oil prices after the US said Saudi Arabia’s damaged East-West pipeline could resume operations within days reduced inflation concerns following the recent surge in crude prices. Additionally, stabilization in global AI and semiconductor shares helped lift technology stocks after recent declines, with Samsung Electronics and SK hynix edging higher. Other gainers included KB Financial Group (2.0%), Doosan Enerbility (2.3%), Hanwha Aerospace (2.9%), and HD Hyundai Heavy Industries (6.9%).

The benchmark KOSPI rose 1.37% to close at 6,718 on Wednesday, snapping a four-day decline amid gains in semiconductor stocks. SK hynix advanced 3.85%, while Samsung Electronics increased 1.81%, helping lift the index despite net foreign selling. Other gainers included Samsung Electro-Mechanics (4.71%), LS Electric (2.05%), Hyosung Heavy Industries (4.28%), and Hanmi Semiconductor (1.35%). Meanwhile, Brent crude traded around $108 a barrel amid escalating Middle East tensions and disruptions to a key Saudi oil pipeline. Higher energy prices could add to inflation and raise costs for Korean companies, which are heavily reliant on imported energy. At the same time, the US 10-year Treasury yield briefly topped 5% for the first time since 2007, increasing concerns over equity valuations and financial conditions. Investors also remained cautious ahead of the Federal Reserve's policy decision, with firm US inflation strengthening rate-hike bets.