Korea's Chip Stocks Surge as BoJ Raises Rates

Korea's chip-heavy stock market saw a boost as Samsung and SK Hynix rose following a strong US semiconductor session. Traders were waiting for the Bank of Japan (BoJ) decision, which was expected to be announced later that day.

The BoJ was set to raise interest rates to a 31-year high, a move that would impact borrowing costs in yen. This, in turn, could affect 'carry trades,' where investors borrow cheaply in one currency and buy higher-returning assets elsewhere.

A higher BoJ policy rate can shrink the pool of low-cost yen borrowing and raise the incentive for Japan-based investors to keep money at home. This added two-way volatility to USD/KRW, making foreign participation in sessions like this one less predictable.