The New York stock market closed lower after the Federal Reserve signaled the possibility of a rate hike within the year, but on the 18th the KOSPI opened higher on the strength of semiconductor stocks.
The KOSPI opened at 8,884.92, up 20.68 points (0.23%) from the previous trading day, then widened its gains to climb to as high as 8,975.52 intraday. This exceeds the previous intraday record high (8,933.62) set on the 2nd.
The KOSPI expanded early gains and, as of 9:13 a.m., is trading around 8,930. In the Korea Exchange, individuals are net buying 500 billion won and pension funds 150 billion won. Foreign investors are net selling close to 460 billion won.
Samsung Electronics and SK hynix are also showing strength together. Samsung Electronics is up in the 1% range, and SK hynix is up in the 3% range. SK Square, which holds a large equity stake in SK hynix, is also strong. Earlier, SK hynix rose more than 1% in the premarket, hitting an all-time high.
Overnight, the three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 0.97%, and the Standard & Poor's (S&P) 500 lost 1.21%. The tech-heavy Nasdaq composite ended down 1.34%.
At its regular Federal Open Market Committee (FOMC) meeting, the Fed kept the benchmark rate unchanged at 3.50% to 3.75% annually. While the decision matched expectations, the Summary of Economic Projections (SEP) raised this year's policy rate outlook from "one cut" to "one hike," stoking tightening concerns.
The dot plot also showed that a majority of members expect an additional rate hike within the year. The Philadelphia semiconductor index, which had surged more than 5% intraday, pared gains but still closed up 1.38%, supporting investor sentiment for domestic semiconductor stocks.
Han Ji-young, a Kiwoom Securities researcher, said, "The domestic stock market could see increased volatility due to the hawkish June FOMC aftermath," but added, "The FOMC did not deviate from the market's shock scenario, and U.S. futures are also rebounding, so there is a high chance of a solid trend led by semiconductors and other leading stocks."
The KOSDAQ index opened at 1,029.81, down 2.15 points (0.21%) from the previous trading day.
Among the top 10 stocks by market capitalization, Wonik IPS and HLB are rising, but most, including Alteogen, EcoPro BM and Rainbow Robotics, are falling.