KOSPI Rebounds 3.31% but Fed Rate Hike Fears May Limit Recovery

The Korea Composite Stock Price Index (KOSPI) rose up to 3.31% to 5,738.18 in Friday trading, recovering less than half of Thursday’s 7.57% drop. Speculation of a Federal Reserve rate hike, fueled by September US producer prices rising by the most in 4.5 years, could cap the rebound, leaving the index about 37% below its June closing peak of 9,114.55. Gains were led by non-AI heavyweights like Hanwha Aerospace (up 8.25%) and Samsung C&T (up 5.79%), while chipmakers like Samsung Electronics (up 2.14%) and SK Hynix (up 1.82%) lagged. KB Securities says the selloff overshot on recession and earnings fears, suggesting a possible W-shaped recovery after July's low, but selling pressure remains due to retail and foreign investor exits.