SEOUL, Sept. 17 (AJP) — Investors in Seoul rotated out of chipmakers and into shipbuilders on Thursday after the U.S. Federal Reserve raised interest rates for the first time since 2023, leaving the KOSPI flat as foreigners sold for a seventh straight session.
Foreign investors dumped a net 2.3 trillion won ($1.6 billion) of shares, lifting their seven-session total above 13 trillion won, as SK hynix and Samsung Electronics slipped and HD Hyundai Heavy Industries jumped 6.6 percent.
The same split ran across the region. Chip stocks lagged in Tokyo even as the Nikkei 225 edged higher. Gold miners dragged on Chinese shares.
The Korea Composite Stock Price Index (KOSPI), the main board of the Korea Exchange, slipped 2.6 points to 6,715.4.
It had been up as much as 1.2 percent before foreign selling deepened and erased the gain.
Institutions bought a net 158.6 billion won ($114.8 million) and individuals 413.8 billion won ($299.4 million).
The Fed, America's central bank, lifted its benchmark rate by a quarter point to a range of 3.75 to 4 percent in a unanimous vote on Wednesday and signaled another increase could come before year-end.
Chipmakers took the brunt of the selling. SK hynix fell 0.8 percent to 1,745,000 won ($1,262.6).
Samsung Electronics lost a smaller 0.4 percent to 252,500 won ($182.7). Components maker Samsung Electro-Mechanics sank 3.7 percent to 1,330,000 won ($962.3).
HD Hyundai Heavy Industries climbed to 469,500 won ($339.7), with local reports tying the rebound to its steep earlier losses and new growth prospects.
Kang Jin-hyuk, a senior researcher at Shinhan Securities, said during the session that industrials and financials were propping up the index while chips paused to digest the hawkish Fed.
Gainers outnumbered decliners 453 to 398, a sign the flat close hid wider buying beneath the chip heavyweights.
The tech-heavy KOSDAQ, South Korea's secondary market, rose 6.2 points to 822.2. The 0.8 percent rise marked its third straight gain.
The won weakened 4.6 won to 1,382.1 per dollar.
In Tokyo, the Nikkei 225 rose 0.3 percent to 64,136.3 for a second straight session.
Chip-testing equipment maker Advantest fell 1.5 percent to 30,240 yen. Fast Retailing and SoftBank Group each gained 1.0 percent, to 67,700 yen and 6,247 yen.
The Bank of Japan opened a two-day policy meeting, with its decision due Friday.
In Shanghai, the composite index traded lower as metals producers led losses. Shandong Gold slid more than 6 percent, a drop Chinese market reports linked to the Fed's move.
Han Ji-young, an analyst at Kiwoom Securities, argued the post-Fed swings are a chance to buy rather than cut exposure, citing intact earnings momentum.
That case rests on foreigners returning. Until they do, a market leaning on shipbuilders rather than chips has little room to absorb another hawkish surprise.
AJP Takeaways
- Foreign investors sold a net 2.3 trillion won ($1.6 billion) of shares, extending their selling streak to a seventh straight session.
- The split ran across the region: chip stocks lagged in Tokyo even as the Nikkei 225 rose 0.3 percent, and gold miners dragged on Chinese shares.
Entity tags: Federal Reserve, Bank of Japan, KOSPI, KOSDAQ, Korea Exchange, Nikkei 225, SK hynix, Samsung Electronics, Samsung Electro-Mechanics, HD Hyundai Heavy Industries, Advantest, Fast Retailing, SoftBank Group, Shandong Gold, Shinhan Securities, Kiwoom Securities, Kang Jin-hyuk, Han Ji-young
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