US Rate Cut Hopes and Google AI Optimism Lift KOSPI by 0.4%

(Seoul=Yonhap Infomax) Gyeong Eun Park – Expectations for a US Federal Reserve rate cut have intensified, while concerns over an AI bubble weighing on equities have eased following positive developments from Google.

As of 09:07 KST on the 26th, South Korea's benchmark KOSPI index was trading at 3,872.30, up 14.52 points, or 0.38%, from the previous session, according to Yonhap Infomax New Stock Composite (screen number 3536).

The KOSDAQ index rose 5.87 points, or 0.69%, to 861.90.

Overnight on Wall Street, the Dow Jones Industrial Average climbed 0.44%. The S&P 500 and Nasdaq Composite surged 1.55% and 2.69%, respectively.

Continued optimism around AI and potential rate cuts supported a three-day rally in global equities.

Google's AI Gemini 3.0 received favorable reviews, helping to calm recent debate over an AI-driven market bubble. Previously, AI tools centered on OpenAI were heavily reliant on graphics processing units (GPUs), raising concerns over investment costs. However, Gemini 3.0 leverages Google's proprietary tensor processing units (TPUs), opening new possibilities. According to foreign media reports, Meta is also considering purchasing Google's TPUs.

Expectations for a Fed rate cut further boosted investor sentiment. Several Fed officials voiced support for a rate reduction next month, and speculation over the next Fed chair also influenced markets. Kevin Hassett, Chairman of the White House National Economic Council, is seen as a leading candidate for the position.

Han Ji-young, analyst at Kiwoom Securities, said, "Depending on upcoming data releases and Fed officials' remarks, concerns over a December rate hold could again dominate market sentiment. However, based on past experience, it is appropriate to maintain a bias toward further cuts, even if macro volatility persists up to the FOMC meeting."

Shares of major market-cap companies were mixed. SK hynix Inc., a key player in the Nvidia AI value chain, extended its decline for a fourth consecutive session, trading down 2.31% at 507,000 won ($390). In contrast, Samsung Electronics Co., South Korea's largest company by market value, rose 0.20% to 99,500 won, once again approaching the 100,000-won threshold.

LG Energy Solution Ltd. gained 2.54%, while Samsung Biologics Co. fell 1.04%. Hyundai Motor Co. advanced 1.17%.

All industry sectors were trading higher, with construction leading gains at 2.14%. HD Hyundai Marine Solution Co. rose 4.21%, and SK Biopharmaceuticals Co. climbed 3.88%.

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gepark@yna.co.kr

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