KOSPI Surges on Fed Rate Hike and Falling Oil Prices

South Korea's benchmark KOSPI index surged 2.81% to 6,903.94 by mid-afternoon Friday, adding 188.53 points, as falling global oil prices and a widely anticipated interest rate increase from the U.S. Federal Reserve combined to ease inflation worries that had rattled markets throughout the week.

The rally built on strength that was evident from the opening bell, with the index opening at 6,885.70, up 170.29 points, or 2.54%, from the previous close.

Gains were broad-based across sectors, though technology and industrial shares led the advance, with the electric and electronics sector climbing 3.29% and manufacturing shares rising 2.66%.

However, individual retail investors were net sellers during the session, offloading a net 174.1 billion won worth of shares, while foreign investors also recorded modest net selling of 16 billion won.

The Fed's rate decision and falling oil prices gave investors reason to step back into riskier assets, with institutional investors driving the rally by recording net purchases of 111.2 billion won.