S. Korean Stock Market Breaks 9,000 Points for First Time, KOSPI Jumps 2.25%

S. Korean stocks surged over 2% Thursday, breaking the 9,000-point mark for the first time in history. Driven by the Fed's hawkish stance, uncertainty over Iran, and strength in chip stocks, investors concentrated bets on semiconductor-related targets.

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

The index has risen for six consecutive sessions, buoyed by optimism over artificial intelligence (AI) and related industries.

Trading volume was heavy at 505.9 million shares worth 49.9 trillion won ($32.7 billion). Foreigners net bought 1.3 trillion won, while retail and institutional investors net sold a combined 1.2 trillion won.

The index reversed overnight losses on Wall Street, where Fed policymakers signaled rate hikes are necessary to curb inflation.

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

He said: "Investors expect semiconductor companies may gain greater pricing power due to persistent supply bottlenecks."

Risk appetite also recovered on expectations that the U.S.-Iran war may soon end. The Fed's fourth consecutive rate hold seemed to have limited impact on investor sentiment.