Seoul’s stock market opened at a new record level despite recent Wall Street losses triggered by indications from the US Federal Reserve about a potential interest rate increase this year. The Korea Composite Stock Price Index (KOSPI) advanced 32.74 points, or 0.37 percent, reaching 8,896.98 early Thursday morning.
The US Federal Reserve maintained its key interest rates for the fourth straight time but signaled the possibility of a hike within the year as part of efforts to control inflation. This announcement contributed to declines in major US indexes overnight, with leading technology stocks like Microsoft, Apple, and Alphabet all closing lower.
In the wider geopolitical arena, uncertainties persisted after the US administration shared a memorandum of understanding with Iran but stressed that the deal was not final and that military action could resume if Iran failed to comply with terms. This added an element of caution among global investors.
Locally, Seoul’s large-cap stocks showed mixed performance. Samsung Electronics shares slipped 4.3 percent, while chipmaker SK hynix gained 3.29 percent. Automotive leader Hyundai Motor declined 1.78 percent, and battery manufacturer LG Energy Solution decreased 1.92 percent. Defence firm Hanwha Aerospace recorded a modest gain of 0.41 percent.
Market analysts noted that despite the recent rally extending over five consecutive sessions, the KOSPI might face short-term correction pressures. Still, underlying value and strong corporate earnings supported the market’s positive trend. The Korean won weakened slightly against the US dollar, trading at 1,524.2 won as of early trading hours.