South Korean shares end at record high on Fed rate cut, chip rally

Round-up of South Korean financial markets:

** South Korean shares ended at an all-time high on Thursday, led by a rally in chipmakers, after the U.S. Federal Reserve lowered interest rates in a widely expected move.

** The benchmark KOSPI KOSPI closed up 47.90 points, or 1.40%, at 3,461.30, its highest level on record.

** The Fed reduced rates on Wednesday for the first time since December and indicated more cuts would follow to halt any slide in the U.S. labour market, which is already experiencing signs of weakness.

** "That increases room for policy responses in non-U.S. markets," Daishin Securities analyst Lee Kyoung-min said.

** South Korean President Lee Jae Myung, who had already brought a number of market reforms under the "KOSPI 5,000" initiative, said it was still necessary to introduce more policy measures to revitalise the domestic market.

** South Korea's finance minister said authorities would closely monitor major market risks, such as uncertainty over U.S. tariff policies and economic indicators, and respond swiftly if needed.

** Chipmaker Samsung Electronics 005930 rose 2.94% to the highest level since August 2024 and peer SK Hynix 000660 gained 5.85% to a record high, resuming a rally on artificial intelligence optimism.

** Among other index heavyweights, battery maker LG Energy Solution 373220 climbed 1.29%, while Hyundai Motor 005380 and sister automaker Kia Corp 000270 were up 1.16% and up 1.09%, respectively.

** Steelmaker POSCO Holdings 005490 added 0.35%, while drugmaker Samsung BioLogics 207940 rose 0.88%.

** Of the total 928 traded issues, 591 shares advanced, while 264 declined.

** Foreigners were net buyers of shares worth 283.8 billion won ($204.54 million).

** The won was quoted 0.83% lower at 1,387.8 per dollar on the onshore settlement platform USDKRW.

** The most liquid three-year Korean treasury bond yield (KR3YT=RR) fell 1.3 basis points to 2.403%, while the benchmark 10-year yield KR10 dipped 3.3 bps to 2.757%.

($1 = 1,387.4700 won)