South Korea's Stock Market Breaks 9,000 for First Time, KOSPI Jumps 2.25%

South Korean stocks jumped more than 2% on Thursday, breaking above the 9,000 mark for the first time ever. Investors piled into chipmakers after the Fed took a hawkish stance and the situation in Iran remained unclear.

The Korea Composite Stock Price Index (KOSPI) rose 199.6 points, or 2.25%, to 9,063.84, after touching an intraday high of 9,106.07.

The index extended its gains for a sixth straight session, supported by optimism around artificial intelligence (AI) and related industries.

Trading volume was heavy at 505.9 million shares, with turnover of 49.9 trillion won (about $32.7 billion). Foreign investors were net buyers of 1.3 trillion won, while retail and institutional investors together were net sellers of 1.2 trillion won.

The index reversed overnight losses on Wall Street after Fed policymakers hinted that a rate hike was inevitable to tame inflation.

Kim Seok-hwan, an analyst at Mirae Asset Securities, said the share-price gains of South Korea’s two biggest chipmakers, Samsung Electronics and SK Hynix, were the main driver behind the KOSPI’s continued rise.

“Investors expect semiconductor companies may gain greater pricing power because of persistent supply bottlenecks,” the analyst said.

Risk appetite also recovered on expectations that the US-Iran war may soon end. The Fed kept rates unchanged for a fourth straight meeting, which appeared to have limited impact on investor sentiment.