U.S. CPI cools, boosting risk assets; South Korea’s KOSPI rises more than 7%, triggering a circuit breaker

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BlockBeats message: On July 15, the US June CPI came in below expectations. Market expectations for short-term rate hikes by the Federal Reserve cooled noticeably, driving gains in global risk assets. After the Korean KOSPI index opened on Wednesday, it surged quickly; during the session, its intraday rise at one point exceeded 7%, triggering a temporary trading halt mechanism (circuit breaker) by the Korea Exchange. The KOSDAQ market also simultaneously triggered a programmed trading pause.

Chip stocks became the main driver of market outperformance. SK hynix ADR jumped 27% overnight in US stocks, lifting its Korean shares by about 10% on Wednesday. Market participants believe that since the listing of SK hynix ADR, the price linkage between the US stock market and Korea’s stock market has been further strengthened, which may form cross-time-zone market volatility transmission.

However, multiple institutions still warned that although cooling inflation data eased concerns about a rate hike in July, escalating Middle East tensions, rising oil prices, and inflation pressure brought by AI investment may still limit the Federal Reserve’s future policy room.

SKHY26.29%
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