Korea Stocks Edge Up on Chipmaker Gains Amid Hawkish Fed Comments

Korean stocks rose on Monday, but gains were limited by hawkish comments from Federal Reserve Chair Kevin Warsh. The KOSPI index climbed 0.46%, with chipmakers like Samsung Electronics and SK Hynix leading the way. Both companies gained over 1% each.

However, not all stocks participated in the rally. Only 366 out of 909 stocks rose on Monday, and foreign investors sold a net 639.8 billion won of shares. This cautious behavior is likely due to concerns about higher US rates, which can make global investors more selective.

In his comments, Warsh said that the Fed will 'have work to do' if it cannot gain confidence that inflation is heading towards 2%. This suggests that tighter policy remains on the table. As a result, Korean bond yields rose alongside this shift in expectations, even as the won strengthened to around 1,370 per dollar.