KOSPI Surges Past BoJ Rate Hike as Investors Focus on Tech and Energy

The KOSPI index surged by about 2% on Friday as investors largely ignored the Bank of Japan's (BOJ) rate hike. The Nikkei 225 rose around 0.8%, despite the BOJ increasing its policy rate to a 31-year high of 1.25%. The yen weakened after the decision, providing support for Japanese exporters.

The strongest performer in Seoul was Samsung Electronics, which climbed 2.6% as foreign investors turned net buyers of KOSPI stocks for the first time in eight sessions. SK Hynix also jumped roughly 4.5%, extending the rebound in memory and AI-linked stocks after a strong session for US semiconductors overnight.

Analyst Han Ji-young from Kiwoom Securities told Seoul Economic Daily that recent foreign selling appeared to be short-term risk management rather than a deterioration in Korea's underlying equity story. The KOSPI traded around 6,848 after opening 2.5% higher.