South Korea's KOSPI breaks above 9,000 for the first time, led by chip stocks with a 2.25% gain

South Korean stocks surged more than 2% on Thursday, with the Korea Composite Stock Price Index (KOSPI) breaking above 9,000 for the first time ever. Buying interest rose sharply on Fed hawkish comments, geopolitical uncertainty and strength in the chip sector.

The KOSPI closed up 199.6 points, or 2.25%, at 9,063.84, after touching an intraday high of 9,106.07, rising for a sixth straight session.

Trading volume reached 505.9 million shares and turnover totaled 49.9 trillion won (about $32.7 billion). Foreign investors were net buyers of 1.3 trillion won, while retail and institutional investors together were net sellers of 1.2 trillion won, showing continued inflows into heavyweight sectors.

Kim Seok-hwan, an analyst at Mirae Asset Securities in South Korea, said the rise in Samsung Electronics and SK Hynix was the main force driving the KOSPI higher. He noted that investors expect persistent supply bottlenecks to improve semiconductor companies' pricing power.

In addition, hopes for easing U.S.-Iran tensions also lifted risk appetite. Although the Fed kept rates unchanged for a fourth straight meeting, policymakers hinted that further hikes could still be needed to curb inflation, which had a relatively limited effect on investor sentiment.