PomegraKospi Rises 2.1% as Fed Hike Bets Ease
Why is the Kospi up today?
The Kospi (^KS11) rose 2.1% to close at 5,668 on Friday as Fed hike bets eased, partly recovering Thursday's 7.6% tech-driven plunge in South Korea's benchmark stock index.
Key numbers
| Kospi close | 5,668.05+2.05% on Friday |
|---|---|
| Nikkei 225 close | 65,324+1.39% on Friday |
| Kospi on Thursday | 5,554-7.57% in one day |
| Nikkei 225 on Thursday | -4.9%-3,318 points |
| Kospi early gain vs close | +3.31% to 5,738early gain; closed at +2.05% (per [2]) |
| CME odds of December Fed hike | 89.5%October hike odds ~27% (per [5]) |
What happened
The Kospi (^KS11) rose 2.1% to close at 5,668 on Friday as Fed hike bets eased, partly recovering Thursday's 7.6% tech-driven plunge in South Korea's benchmark stock index. Japan's Nikkei 225 rose 1.4% to 65,324 after sliding 4.9% on Thursday. Traders cut their bets that the US central bank (the Fed) will raise interest rates this month, though most big banks still expect a hike in December. Foreign investors bought Korean shares after eight straight days of selling.
Why it matters
The Kospi's swings show how nervous investors are about heavy spending on artificial intelligence (AI) and about higher interest rates. South Korea and Japan are home to big chip makers such as Samsung Electronics and SK Hynix, so sharp moves there can spread to other markets. Even after Friday's gain, the Kospi remains more than a third below its June peak of about 9,115, so the rebound is only partial.
Who this affects
- MarketmixedMedium impact
- Tech-heavy Asian stock markets recover part of Thursday's losses.
- CompanybullishLow impact
- Samsung and SK Hynix shares edge up after Thursday's slump.
- CompetitorsbullishLow impact
- Japan's Nikkei, Tokyo Electron and SoftBank also recover.
- IndustrymixedMedium impact
- Chip and AI-linked firms still face debt and spending worries.
Kospi vs Nikkei 225, Kosdaq
| Kospi^KS11 | 5,668 | +2.05% | -7.57% |
|---|---|---|---|
| Nikkei 225^N225 | 65,324 | +1.39% | -4.90% |
| Kosdaq^KQ11 | 794 | +4.46% | -7.7% |
As of 2026-10-16
How we got here
Hotter-than-expected US inflation data lifts bets on more Fed rate hikes.
CoreWeave shares fall 15.5% on debt worries, feeding a global AI-stock selloff.
Kospi plunges 7.57% and Nikkei falls 4.9% in a tech rout.
Kospi closes up 2.05% and Nikkei up 1.39% as Fed hike bets ease.
What to watch
- Fed interest-rate decision; traders now see a December hike as far more likely than October2026-10-28
- Whether foreign investors keep buying Korean shares after eight straight days of selling2026-10-19
- Debt worries around AI spending, including CoreWeave, that triggered the routQ4 2026
Educational content only. Not investment advice.
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