Why Is KOSPI Rising Despite a Bank of Korea Rate Hike? Samsung and SK Hynix Lead AI Rally
Overview On the morning of August 27, the Bank of Korea raised its benchmark rate by 25 basis points to 3.00%, the first back-to-back hike since January 2023. Conventional logic says a tightening central bank compresses equity valuations. Instead the KOSPI opened at 6,996.12, up 187.91 points or 2.76%, approaching 7,000 for the first time in seven sessions, and still held gains of roughly 1.93% around 11:20 a.m. The explanation is not in the rate statement. It is in what happened after the U.S.