Risk assets moved higher after U.S. June CPI came in below expectations, easing market expectations for near-term Federal Reserve rate hikes. In South Korea, the KOSPI surged shortly after Wednesday’s open and at one point rose more than 7%, triggering the Korea Exchange’s temporary trading halt mechanism. The KOSDAQ market also saw a program trading suspension. Chip stocks led the rally, with SK Hynix among the standout names after its ADR had jumped 27% overnight in U.S. trading, helping lift its South Korean shares by about 10% on Wednesday. Market participants said the listing of SK Hynix ADRs has strengthened price linkage between U.S. and Korean equities, increasing the possibility of cross-time-zone volatility transmission. Even so, several institutions warned that while softer inflation data reduced concerns over a July rate hike, an escalation in Middle East tensions, rising oil prices, and inflation pressure tied to AI investment could still constrain the Fed’s policy room going forward.
According to BlockBeats, U.S. June CPI came in below expectations on July 15, cooling market expectations for near-term Federal Reserve rate hikes and pushing global risk assets higher.
In South Korea, the KOSPI climbed sharply after Wednesday’s open. The index was up more than 7% at one point, triggering the Korea Exchange’s temporary trading halt mechanism. The KOSDAQ market also triggered a program trading suspension.
Chip stocks lead the move
Chipmakers were at the front of the rally. SK Hynix was a key driver after its ADR surged 27% overnight in U.S. trading, helping lift its South Korean shares by about 10% on Wednesday.
Market participants said that since the SK Hynix ADR listing, price linkage between U.S. equities and the South Korean market has become stronger, raising the possibility that volatility can transmit across time zones more directly.
Institutions still flag inflation risks
Several institutions said that even though the latest inflation reading eased concerns about a July rate hike, an escalation in Middle East tensions, higher oil prices, and inflation pressure linked to AI investment could still limit the Federal Reserve’s policy room in the future.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
