South Korean Stock Market Hits Record High; KOSPI Breaks 9000 for First Time

South Korean stocks surged more than 2% on Thursday, breaking the 9,000-point mark for the first time in history. Investors bet on chipmakers amid the Fed's hawkish stance and uncertainties over Iran.

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

Boosted by optimism over artificial intelligence (AI) and related sectors, the index rose for the sixth consecutive session.

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

The index reversed the overnight decline on Wall Street, where Fed policymakers hinted at necessary rate hikes to curb inflation.

Analyst Kim Seok-hwan of Mirae Asset Securities said the rise in shares of the two largest chipmakers, Samsung Electronics and SK Hynix, was the main driver behind the KOSPI's continued rally.

"Investors expect semiconductor companies may gain greater pricing power due to persistent 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.