KOSPI jumps 1.48% as Fed rate-hold bets strengthen

  • KOSPI rose 1.48% on the 4th as expectations for unchanged Fed rates increased.
  • Foreign investors bought 119.1 billion won of KOSPI shares, while individuals sold 232.2 billion won.
  • KOSDAQ advanced 1.79%, with all 10 largest market-cap-weighted stocks rising.

South Korea's KOSPI (benchmark South Korean stock index) was trading at 6,676.53 at 9:05 a.m. on the 4th, up 97.05 points, or 1.48%, from the previous session. Foreign investors and institutions were net buyers of 119.1 billion Korean won and 100.8 billion Korean won, while individuals sold a net 232.2 billion won. Other entities, presumed to be affiliates of Samsung Electronics and SK Hynix purchasing their own shares, bought a net 12.4 billion won. Samsung Electronics and SK Hynix each rose more than 2%, while most major market-cap-weighted stocks also gained. Expectations that the Federal Reserve could keep its benchmark rate unchanged in September strengthened after dovish comments from Fed governor Christopher Waller and John Williams, president of the Federal Reserve Bank of New York. The CME FedWatch Tool (interest-rate futures probability tracker) put the chance of a September rate hold at 49.5%, up from 36.8% the previous day. All three major U.S. stock indexes closed more than 1% higher. The U.S. 10-year Treasury yield edged down to 4.76%, while international oil prices stayed near $90 a barrel. The KOSDAQ (South Korean small-cap stock index) rose 1.79% to 804.34, with foreign investors buying a net 17 billion won and individuals and institutions selling 7.5 billion won and 5.5 billion won, respectively. All 10 of the KOSDAQ's largest market-cap-weighted stocks, including Alteogen, were rising.

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