TradingKey - Japanese and South Korean stock markets closed sharply higher, with the KOSPI surging 2.66%, SK Hynix soaring 6.4%, and Kioxia jumping 9.4%.

During the Asian trading session on September 18, both Japanese and South Korean stock markets oscillated higher intraday. However, significant divergence emerged in late trading, with South Korean equities rallying while Japanese equities weakened, though both ultimately ended higher.

The KOSPI Index rose 2.66%, briefly breaking above the 6,900 mark intraday, and ultimately closed at 6,894.23 points. Both major heavyweights delivered strong performances, with Samsung Electronics rising 3.37% to close at 261,000 KRW, and SK Hynix surging 6.42% to 1,857,000 KRW.

KOSPI Index chart, Source: TradingView

The Nikkei 225 Index rose 1.38%, reclaiming the 65,000 mark to close at 65,018.73 points. Both major heavyweights advanced, with Kioxia surging 9.4% to close at 54,570 JPY, and SoftBank rising 1.09% to 6,315 JPY.

Following the Federal Reserve's latest policy announcement, market concerns over global liquidity eased. The rebound in U.S. tech stocks provided a favorable external risk environment for Asia-Pacific markets. The Japanese yen remained range-bound against the U.S. dollar without experiencing sharp appreciation, protecting the earnings expectations of Japanese exporters, while renewed net foreign capital inflows drove the Nikkei 225 Index higher.

Japan's ongoing corporate governance reforms continue to unlock dividends, which, combined with a relatively moderate rate-hike pace by the Bank of Japan (BOJ), keeps overall Japanese equity valuations globally attractive. In addition, according to three people familiar with the matter, Solidigm, a subsidiary of SK Hynix, is considering building a NAND flash chip manufacturing plant in the U.S., though the plan has not yet been confirmed by the relevant parties. If SK Hynix or Solidigm confirms the matter in the future, it could further push their stock prices to extend their rebound.

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