With the likelihood growing that the U.S. Federal Reserve (Fed) will hold its benchmark interest rate steady, Korea's stock market ended higher on the 4th. In particular, major investor groups—foreigners, institutions, and other corporations, excluding individuals—turned net buyers across the board, driving the market's gains.
The KOSPI index rose 107.73 (1.64%) from the previous trading day to finish at 6,687.21. The index opened higher and attempted to reclaim the 6,750 level during the session, but the gains narrowed somewhat.
Other corporations, presumed to be conducting share buybacks by Samsung Electronics and SK hynix, bought a net 1.5741 trillion won. Institutions and foreigners were also net buyers of 1.6691 trillion won and 479.3 billion won, respectively. Individuals alone dumped shares heavily, selling a net 3.7224 trillion won.
Overnight, as senior Federal Reserve officials delivered dovish (favoring monetary easing) remarks, concerns about high interest rates that had weighed on the market eased somewhat.
Federal Reserve Governor Christopher Waller said he would be willing to support holding the benchmark rate if upcoming inflation data confirm easing price pressures. On the Chicago Mercantile Exchange (CME) FedWatch, the probability of the Fed holding rates in September rose to 49.5% from 36.8% the previous day.
U.S. Government Bonds yields showed some stabilization. The U.S. 10-year Treasury yield fell 0.032 percentage point (pp) to close at 4.762%.
However, the rise in oil prices continues to pressure stocks as military clashes between the United States and Iran persist. U.S. Vice President J.D. Vance said the United States would not engage in talks unless Iran stops attacking merchant ships. October West Texas Intermediate (WTI) futures are trading above $91 per barrel.
Technology stocks such as Samsung Electronics and SK hynix were strong. Refiners, including 에쓰오일, also gained on heightened expectations of benefits from higher oil prices. In contrast, financials such as KB Financial Group(105560), which had risen on high-rate expectations, fell.
The KOSDAQ index closed up 23.29 (2.95%) at 813.5. Foreigners and institutions were net buyers of 260 billion won and 160 billion won, respectively. Individuals alone sold a net 411.9 billion won. ROBOTIS, which surged 22% on news that its founder would invest in a subsidiary after selling equity, jumped.