South Korea shares rise as Fed rate hike eases uncertainty

According to Business Recorder, South Korean shares traded higher on Thursday even after the US Federal Reserve lifted interest rates, the first increase since 2023. Fed Chair Kevin Warsh's determination to tackle inflation was seen as easing some market uncertainty. At 03:46 GMT, the benchmark KOSPI stood 28.08 points, or 0.42 per cent, higher at 6,746.05.

Chipmaker Samsung Electronics added 0.20 per cent, while SK Hynix slipped 0.40 per cent. LG Energy Solution fell 0.27 per cent, Hyundai Motor finished flat and Kia dropped 0.50 per cent. POSCO Holdings gained 0.15 per cent, but Samsung BioLogics lost 1.14 per cent.

Foreign investors were net sellers of shares worth 1,243.6 billion won, while the won weakened to 1,380.0 per dollar, down 0.22 per cent from its previous close at 1,377.0. The KOSPI has climbed 60.08 per cent this year, and the won has gained 4.3 per cent against the dollar over the same period. In debt markets, the three-year treasury bond yield rose 4.9 basis points to 4.087 per cent, while the 10-year yield dropped 1.1 basis points to 4.542 per cent.