The KOSPI opened 0.9% higher as the U.S. Federal Reserve raised interest rates for the first time in over three years and hinted at the possibility of further increases this year. Despite a broad decline in U.S. stocks overnight, the domestic market showed gains, driven by semiconductor stocks such as Samsung Electronics and SK Hynix.
As of 9:08 a.m. on September 17, the KOSPI was up 38.86 points (0.58%) at 6756.83. The index started at 6779.02, up 61.05 points (0.91%) from the previous close, before giving back some of its gains.
In the securities market, individual and institutional investors bought a net 90.1 billion won and 52.2 billion won, respectively. In contrast, foreign investors sold a net 200.4 billion won.
Among the top market capitalization stocks, Samsung Electronics rose 0.99%, SK Hynix increased by 0.91%, and Hyundai Motor gained 0.55%. However, LG Energy Solution fell by 0.27% and KB Financial dropped by 0.28%.
The KOSDAQ index also showed an upward trend. At the same time, the KOSDAQ was trading at 822.53, up 6.55 points (0.80%) from the previous day. It opened at 820.16, up 4.18 points (0.51%), and then increased further.
In the KOSDAQ market, individual and institutional investors bought a net 27.5 billion won and 2.3 billion won, respectively, while foreign investors sold a net 28.9 billion won.
Among the top KOSDAQ stocks, Alteogen rose 0.39%, EcoPro increased by 0.49%, and JUSUNG Engineering gained 0.99%. Conversely, EcoPro BM fell by 0.19%, Rainbow Robotics dropped by 0.24%, and Wonik IPS decreased by 1.42%.
Overnight, U.S. stocks fell sharply following the Fed's interest rate hike and the potential for further tightening. On September 16, the Dow Jones Industrial Average closed down 631.21 points (1.21%) at 51,461.90. The S&P 500 index fell by 33.92 points (0.45%) to 7551.81, while the tech-heavy Nasdaq Composite dropped 3.15 points (0.01%) to 25,978.43.
U.S. stocks initially rose but reversed course after the Fed's interest rate decision. The Fed raised the benchmark interest rate by 0.25 percentage points to a range of 3.75% to 4.00%, marking the first increase in about three years and two months.
All 12 members of the Federal Open Market Committee (FOMC) unanimously supported the rate hike. With the Fed leaving the door open for additional rate increases this year, market concerns about the intensity of future tightening have grown.
U.S. Treasury yields also rose, with the benchmark 10-year Treasury yield surpassing 5% during the session. The dollar strengthened, with the dollar index (DXY) rising 0.6% to 100.21 against a basket of six major currencies.
International oil prices fell. After a sharp rise in previous days, oil prices retreated as news emerged of Saudi Arabia's diversion of oil supplies. West Texas Intermediate (WTI) for October delivery settled at $102.43 per barrel, down 3.21% from the previous day.
Han Ji-young, a researcher at Kiwoom Securities, stated, "We should prepare for the possibility of one more rate hike this year," adding that the domestic market is likely to experience increased volatility as it digests the hawkish signals from the September FOMC.
* This article has been translated by AI.
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