KOSPI closes 0.04% lower as foreign selling offsets Fed-driven gains

  • The KOSPI closed at 6,715.41, down 0.04%, after foreign selling erased early gains.
  • The Federal Reserve raised its benchmark rate 25 basis points to 3.75%-4.00%.
  • President Donald Trump demanded U.S. interest rates below 1% after the Fed decision.

The KOSPI closed at 6,715.41 on September 17, down 2.56 points, or 0.04%, after opening 0.91% higher and reaching 6,795.53 before foreign selling erased its gains. Investors assessed the Federal Reserve's unanimous 25-basis-point rate increase to 3.75%-4.00%, its first increase since 2023, and projections indicating that most policymakers anticipate further tightening before year-end. Foreign investors remained net sellers for seven consecutive sessions, while institutions bought 1,211.7 billion won and individuals sold 1,186.4 billion won in the newer market breakdown. The won weakened 13.6 won to 1,382.2 per dollar. President Donald Trump responded by demanding U.S. interest rates of 1% or less, while saying he remained confident in Federal Reserve Chair Kevin Warsh and supported the central bank's independence. Trump also said stopping trade with countries running surpluses with the U.S. would generate at least $1.5 trillion annually.

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