10.12.202502:19:03UTC+00South Korean Shares Fall Ahead of Fed Decision

On Wednesday, the KOSPI index dipped by 0.1% to approximately 4,139, continuing its decline from the previous session. This decline came as investors adopted a cautious stance ahead of the Federal Reserve's policy announcement expected later today. Market participants remain on edge, balancing the potential for a rate cut with ongoing inflation concerns, which has maintained a subdued risk appetite across global markets and led to defensive moves in key sectors. Despite a generally favorable global environment, support from the semiconductor sector was mixed. Reports suggested that Nvidia might soon begin shipping H200 chips to China, a development that typically stimulates optimism among Korean semiconductor manufacturers. This news somewhat alleviated the pressure on major technology stocks, although overall market activity was restrained as investors refrained from committing to substantial positions before the Fed's decision. Notable declines were observed in Samsung Electronics (-0.2%), LG Energy Solution (-0.1%), Hyundai Motor (-2.0%), Hanwha Aerospace (-1.9%), KB Financial Group (-0.9%), and Kia Corporation (-0.8%).