South Korean Stocks Break 9000 Points for First Time; KOSPI Jumps 2.25%

South Korean stocks surged more than 2% Thursday, breaking through the 9,000-point mark for the first time in history. Investors piled into chip makers amid the Fed's hawkish stance and ongoing uncertainty over Iran.

The Korea Composite Stock Price Index (KOSPI) closed up 199.6 points, or 2.25%, at 9,063.84, after hitting an intraday high of 9,106.07.

The index rose for a sixth consecutive session, boosted by optimism over artificial intelligence (AI) and related industries.

Trading volume was heavy at 505.9 million shares, with turnover reaching 49.9 trillion won (about $32.7 billion). Foreign investors net bought 1.3 trillion won, while retail and institutional investors together net sold 1.2 trillion won.

The index reversed overnight losses on Wall Street after Fed policymakers hinted that rate hikes were necessary to curb inflation.

Analyst Kim Seok-hwan of Mirae Asset Securities said the rally in shares of the two major chip makers, Samsung Electronics and SK Hynix, was the main driver of the KOSPI's continued advance.

'Investors expect semiconductor companies may gain greater pricing power due to ongoing supply bottlenecks,' the analyst said.

Risk appetite also revived on expectations that the US-Iran war would soon end. The Fed's fourth consecutive rate hold appeared to have limited impact on investor sentiment.