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

On October 16, 2026, Seoul's stock market rebounded by more than 2%, breaking a seven-day losing streak. The Korea Composite Stock Price Index (KOSPI) closed up 113.83 points, or 2.05%, reaching 5,668.05. This recovery was largely fueled by reduced fears surrounding the semiconductor industry and optimistic expectations regarding the Federal Reserve's monetary policy.

Investors engaged in bargain hunting, particularly for large-cap technology stocks, following a significant decline in semiconductor shares the previous session. Notably, Samsung Electronics rose by 2.62%, while SK Hynix saw a modest increase of 0.79%. The overall trade volume was relatively light, with 286.5 million shares traded, valued at approximately 20 trillion won.

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 boosted by remarks from Fed Chair Kevin Warsh during the IMF-World Bank meetings in Bangkok, where he expressed optimism about the U.S. economy and refrained from indicating an imminent rate hike.

Warsh's comments, alongside Nvidia CEO Jensen Huang's reassurance about the financial health of AI-related companies, helped alleviate concerns in the market. The Korean won also appreciated against the U.S. dollar, trading at 1,331.4 won, reflecting a 13.2 won increase from the previous session.