Kospi dips 0.04%, TAIEX up 0.96% after Fed rate hike

The Federal Open Market Committee voted unanimously to raise the benchmark federal funds rate by 25 basis points to a range of 3.75% to 4%, marking the first such hike since 2023. The move was in line with market expectations and aimed at addressing persistent inflation fueled by global energy supply concerns linked to the West Asia crisis.

In South Korea, the Kospi opened higher at 6,779.02 points but failed to sustain gains, touching an intraday high of 6,795.53 and a low of 6,697.85 before closing at 6,715.41, down 0.04%. The decline was attributed to foreign institutional selling and a stronger US dollar, which weighed on investor sentiment.

Taiwan's TAIEX opened at 45,936 points, reached an intraday high of 46,874.84, and closed 0.96% higher at 46,288. The gain was driven by strength in technology stocks, particularly Taiwan Semiconductor Manufacturing Company (TSMC), which holds nearly 40% weight in the index and benefited from strong global chip demand due to AI innovation.

Market participants had priced in over a 90% probability of a 25 basis point hike, and the Fed's projections indicated the possibility of another increase in the second half of 2026, with policymakers seeing the federal funds rate at 4.1% by end-2026.

No further details beyond the reported movements and official statements were included in the source material.