Seoul Stocks Rebound Over 2% on Eased Chip Concerns and Fed Optimism

On October 16, 2026, Seoul stocks rebounded by over 2%, breaking a seven-day losing streak. This recovery was attributed to reduced concerns surrounding the semiconductor industry and optimistic expectations regarding the Federal Reserve's monetary policy.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 5,668.05, up 113.83 points or 2.05%. The trading volume was relatively low, with 286.5 million shares exchanged, valued at approximately 20 trillion won (around $15 billion).

Investors took advantage of lower prices in large-cap tech stocks, particularly major chipmakers like Samsung Electronics and SK Hynix, which had suffered significant losses in recent sessions. Foreign investors were net buyers, purchasing stocks worth 343.5 billion won, while retail and institutional investors sold a combined net of 1.17 trillion won.

The positive sentiment was further bolstered by comments from Federal Reserve Chair Kevin Warsh during the IMF-World Bank meetings in Bangkok. He expressed optimism about the U.S. economy and its resilience, though he did not indicate a specific timeline for potential interest rate hikes. Warsh's remarks, along with his views on the transformative impact of artificial intelligence, helped revive interest in riskier assets.

In the local market, major players like Samsung Electronics and Hyundai Motor saw significant gains, with shares rising by 2.62% and 5.58%, respectively. The Korean won also appreciated against the U.S. dollar, trading at 1,331.4 won per dollar, up 13.2 won from the previous session.