South Korea's benchmark markets continued to diverge after the U.S. Federal Reserve's Federal Open Market Committee delivered a hawkish outcome. The KOSPI closed at 6,715.41 on the previous session, down 0.04% from a day earlier, according to the Korea Exchange on the 18th. It had gained more than 1% intraday before heavy foreign selling erased the advance. The KOSDAQ rose 0.76% to 822.18 for a third consecutive gain. Through the 17th, the KOSPI had fallen 4.53% from 7,033.92 after crossing 7,000 on the 10th of this month, while the KOSDAQ declined 1.76% from 836.92 to 822.18, outperforming by 2.77 percentage points. The KOSDAQ's resilience came despite the Fed raising its policy rate to 4.00%, its first increase in three years, and leaving room for additional hikes this year in its dot plot. Large-cap chip stocks paused on the KOSPI, while financials, shipbuilders and defense contractors provided support. On the KOSDAQ, materials, parts and equipment suppliers, aerospace shares and selected biotechnology and secondary-battery stocks helped sustain the index. Analysts cited sector rotation as a key factor behind the divergence.