SEOUL, December 12 (AJP) - Asian equity markets rallied across the board on Friday, lifted by optimism from Wall Street after U.S. Federal Reserve Chair Jerome Powell’s hawkish rate cut was interpreted as a signal that the American economy may avoid a recession.
Despite the market rebound, currency volatility persisted. The Korean won closed at 1,476.3 per dollar as of 4 p.m., up 3.8 won from the previous session, amid concerns that it could again test the 1,480 level. Fears of a potential unwind of yen carry trades continued to weigh on foreign exchange markets.
Government bond yields were mixed. The three-year Korean Treasury yield fell 8 basis points to 3.093 percent following the Fed decision, while the 10-year yield rose 3.1 basis points to 3.409 percent after the government formally announced plans to establish a sovereign wealth fund.
South Korea’s benchmark KOSPI gained 1.38 percent to close at 4,167.16.
Institutional investors drove the rally, net buying 1.42 trillion won ($962 million). Foreign investors also supported the market with net purchases of 41.3 billion won, while retail investors took profits, selling 1.46 trillion won.
Blue-chip stocks advanced broadly. Samsung Electronics rose 1.49 percent to 108,900 won, while SK hynix added 1.06 percent to 571,000 won.
Hyundai Motor Group shares also strengthened as investors bet on resilient U.S. economic conditions and consumer demand. Hyundai Motor climbed 2.03 percent to 301,500 won, Hyundai Mobis gained 4.72 percent to 377,500 won, and Hyundai Engineering & Construction posted one of the day’s sharpest gains, jumping 5.98 percent to 78,000 won.
Defense stocks traded higher on persistent geopolitical risks and expectations that a weaker won would bolster export competitiveness. Hanwha Aerospace surged 6.31 percent to 961,000 won, Hyundai Rotem rose 4.02 percent to 186,400 won, and LIG Nex1 gained 2.82 percent to 383,000 won.
Japan’s Nikkei 225 also advanced, closing 1.37 percent higher at 50,836.55.
Export-oriented Japanese stocks were among the strongest performers. Toyota, the market capitalization leader, climbed 4.82 percent to 3,260 yen (20 dollars and 90 cents), while Honda rose 1.78 percent to 1,600 yen.
AI power grid-related shares also tracked higher. Tokyo Electric Power Company (TEPCO) gained 5.54 percent to 661 yen, and Hitachi closed 4.24 percent higher at 5,010 yen.
Taiwan’s TAIEX posted a more moderate rise, closing 0.62 percent higher at 28,198.02. TSMC gained 0.68 percent to 1,480 Taiwan dollars (47 dollars and 43 cents), while MediaTek rose 0.72 percent to 1,405 Taiwan dollars.
Greater China markets also finished higher. The Shanghai Composite Index edged up 0.41 percent to 3,889.35, while the Shenzhen Component rose 0.84 percent to 13,258.33.
Hong Kong’s Hang Seng Index, which is sensitive to U.S. market moves, outperformed the region, climbing 1.64 percent to 25,950 as of 4:40 p.m.
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