South Korea’s Kospi Index Hits Record High After Government Scraps Stock Tax Hike Plan

South Korea’s benchmark Kospi index soared to a record high of 3,420.23 in early Monday trade, marking its 10th consecutive session of gains. The rally came on the heels of Finance Minister Koo Yun-cheol’s announcement that the government will abandon its plan to increase taxes on stock investments, a move widely welcomed by retail and institutional investors alike.

While Seoul’s stock market was on a tear, the region showed a mixed performance. Australia’s ASX/S&P 200 slipped 0.34%, reflecting cautious investor sentiment, whereas Hong Kong’s Hang Seng Index gained 0.16% at the open, with its tech subindex rising 0.27%. The small-cap Kosdaq in Korea also edged up 0.15%, showing broad-based optimism in local equities.

Investors across Asia were also focused on high-level talks between the United States and China taking place in Madrid. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang to discuss economic and national security issues, including the upcoming TikTok divestment deadline and U.S. tariffs.

Markets were bracing for fresh data from Beijing on retail sales, fixed asset investment, and urban unemployment. Early figures showed the mainland’s economy slowed in August, with retail sales and industrial output missing expectations. Real estate investment slumped 12.9% in the first eight months, highlighting ongoing challenges for the world’s second-largest economy.

In the U.S., equity futures were little changed in Asian trading hours as investors looked ahead to this week’s Federal Reserve meeting, hoping for an interest rate cut. On Wall Street, the Nasdaq Composite closed at a record high Friday, while the S&P 500 posted its best weekly gain since early August. These gains, fueled by soft labor market data and subdued inflation, bolstered hopes of a more dovish Fed stance.

source: cnbc