South Korea’s Kospi Rises 1.5% on Hopes for a U.S. Rate Hold as Foreign Investors Buy

South Korean stocks opened sharply higher on Sept. 4 as investors bet the U.S. Federal Reserve would hold interest rates steady this month. The Kospi rose 1.44% to 6,674.02 at 9:13 a.m., while the Kosdaq climbed 2.18% to 807.44 and reclaimed the 800-point level.

The gains followed a broad advance on Wall Street. The Nasdaq rose 1.4%, and all three major U.S. indexes finished higher as expectations for a September rate hold strengthened. Stabilizing interest rates, which had climbed to their highest level since November 2023 amid inflation and further-hike concerns, drew buying into technology stocks.

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Recent signs of disinflation have emerged, including a slowdown in core inflation over the past three months.

Federal Reserve Governor Christopher Waller said on Sept. 3 that signs of disinflation had emerged, including slower core inflation growth over the past three months. “If there are no unexpected results in future inflation data, I am leaning toward supporting a rate hold at this month’s FOMC,” he said.

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If there are no unexpected results in future inflation data, I am leaning toward supporting a rate hold at this month’s FOMC.

Foreign investors bought roughly 250 billion won in the main market, while institutions bought about 290 billion won, according to combined figures from the Korea Exchange and Nextrade. Retail investors sold about 590 billion won. Samsung Electronics rose 1.70% to 254,250 won, and SK Hynix gained 2.29% to 1.6325 million won. SK Square, Samsung Electro-Mechanics, LG Energy Solution and Hyundai Motor also rose about 1%, while Samsung C&T fell more than 4%.

In the Kosdaq market, foreign investors bought about 90 billion won and institutions about 5 billion won, while individuals sold around 90 billion won. Alteogen rose about 1%, Robotis gained more than 20%, Rainbow Robotics rose 7% and EO Technics climbed 6%. Kiwoom Securities researcher Han Ji-young said Waller’s remarks had eased some market anxiety caused by the rise in interest rates, while investors would watch U.S. August employment data and the yen’s direction during the session.

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Waller’s remarks have somewhat eased stock-market anxiety caused by the sharp rise in interest rates.