South Korean Stocks Break 9,000-Point Barrier for First Time, Fueled by Chip Hopes

South Korea's benchmark KOSPI index surged past the 9,000-point mark for the first time in history, driven by robust expectations for the semiconductor sector. The index closed at 9,063.84, up 2.25% from the previous trading day, and even touched an intraday high of 9,106.07.

This historic milestone was achieved despite lingering concerns about potential interest rate increases by the U.S. Federal Reserve. The Fed, in its latest Federal Open Market Committee (FOMC) meeting, maintained its benchmark interest rate but signaled the possibility of further hikes within the year. However, optimism surrounding the earnings of major chip manufacturers proved a stronger force in the market.

Foreign investors played a crucial role in propelling the index upward, injecting approximately 1.28 trillion won into the market. In contrast, domestic individual and institutional investors offloaded shares worth around 420 billion won and 770 billion won, respectively. Samsung Electronics, a bellwether for the semiconductor industry, also saw its global market capitalization rank rise to 10th, reflecting the sector's significant influence on the market.

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Inflation has been significantly above the Fed's long-term target of 2% for more than five years.