South Korean and Nepalese markets react to policy shifts and interest rates

South Korean and Nepalese markets have shown recent volatility and shifts driven by policy changes and global economic signals. In South Korea, the KOSPI has fluctuated as investors digest the U.S. Federal Reserve’s first interest rate hike in over three years. Despite this, tech stocks like Samsung Electronics and SK hynix have provided support, with SK hynix seeing gains after resolving labor concerns regarding a wage agreement.

In Nepal, the Nepal Stock Exchange (NEPSE) experienced a significant rebound, marking its largest single-day gain in nearly two months. This rally followed the government’s introduction of a 21-point Capital Market Strengthening and Recovery Action Plan, which includes proposed reductions in capital gains tax.

Separately, Nepal’s broader economy faces a complex landscape. While the country maintains significant financial buffers through large remittance inflows and a balance of payments surplus, it faces substantial reconstruction costs following the Bhotekoshi disaster. Additionally, real estate transactions in Nepal have nearly doubled in value over the last fiscal year, alongside a steady increase in female land ownership.