A molding machine comprises a mold composed of lower and upper mold sections. A recess is defined in the lower mold section to receive a lead frame or other objects. The lead frame is sandwiched between the upper and lower mold sections. A mold cavity is defined in the lower mold section below the recess so as to receive a thermosetting resin or encapsulant. A gasket groove is defined adjacent to the mold cavity to receive a gasket. The gasket is subject to plastic deformation upon application of force. An oil chamber is communicated with the gasket groove and contains hydraulic oil. The hydraulic oil is pressurized to urge the gasket against the lead frame. As a result, the gasket is so deformed as to closely contact the surface of the lead frame and seal the mold cavity. The hydraulic oil is preferably mixed with thermoplastic resin in powder form.