The KOSPI opened higher on the 3rd and recovered the 6,600 level. A rebound in U.S. markets, where fears of rising overnight market rates had eased, acted as a tailwind for domestic equities.
At 9:10 a.m., the KOSPI index was calculated at 6,608.37, up 45.65 points (0.70%) from the previous trading day. Across the Korea Exchange and Next Trading, individual investors net-bought 173.3 billion won worth of stocks, other corporations net-bought 50.2 billion won, while foreign investors net-sold 159 billion won and institutional investors net-sold 68.2 billion won.
Samsung Electronics traded up 3,000 won (1.20%) at 253,500 won on the Korea Exchange, and SK Hynix traded up 24,000 won (1.49%) at 1.637 million won.
Among other top market capitalization stocks, Samsung C&T and KB Financial Group showed gains in the 2nd% range, while Samsung Life Insurance and SK Square posted gains in the 1st% range. Samsung Electro-Mechanics and Hyundai Motor were mostly flat, and Samsung Biologics remained in flat territory.
By sector, KOSPI retail, insurance, electrical & electronics, and entertainment/culture sectors rose by about 1%, while manufacturing, financials, electricity & gas, transportation/warehousing, general services, medical precision, machinery & equipment, and real estate were mostly flat.
Conversely, telecommunications, textiles/apparel, and securities sectors fell by about 1%, while paper/wood, construction, chemicals, non-ferrous metals, transport equipment, IT services, food/beverage/tobacco, metals, and pharmaceuticals were mostly flat.
At 6 a.m., the KOSPI 200 overnight futures closed up 1.40%.
On the 2nd (local time), the U.S. Dow Jones Industrial Average rose 0.56% from the previous day, the S&P 500 index rose 0.46%, and the NASDAQ Composite rose 0.45%. The Philadelphia Semiconductor Index gained 0.45%.
The easing of the U.S. Treasury yield uptrend was identified as the backdrop driving the market rebound. The 10-year U.S. Treasury yield briefly surged to 4.818% during trading, reaching its highest level since November 2023, but gave back gains and closed at 4.793%.
U.S. ADP (Automatic Data Processing) private employment data that came in below market expectations and comments by John Williams, president of the Federal Reserve Bank of New York, helped ease fears of base rate hikes. In a CNBC interview, President Williams stated, "There is evidence that inflation is easing," adding, "Rising energy prices are not spreading to other service prices."
Broadcom, which released earnings after the market close, showed both revenue and earnings per share (EPS) exceeding market expectations. However, its after-hours stock price declined.
Kiwoom Securities researcher Han Ji-young said, "Investors should closely watch Broadcom's annual consensus estimates for AI (artificial intelligence) semiconductor sales," adding, "This is expected to lead to improved earnings strength across the broader market, including leading AI and semiconductor stocks."
Regarding the domestic market, she noted, "Despite major positive announcements from core sectors, sell-on phenomena continue to repeat. This is unlikely to be due to individual company fundamentals; rather, it reflects a temporary weakening of new buying momentum aside from share buybacks by Samsung Electronics and SK Hynix amid short-term macroeconomic uncertainty."
At this time, the KOSDAQ index stood at 803.17, down 0.81 points (0.10%) from the previous day. Individual investors net-bought 117.7 billion won worth of stocks, while foreign investors net-sold 101 billion won and institutional investors net-sold 10.1 billion won.
Among top market capitalization stocks, Iotechnic rose by about 2%, while Rino Industrial and Rainbow Robotics posted gains in the 1st% range. EcoPro, HLB, AlteoGen, and Juseong Engineering fluctuated in mostly flat territory. In contrast, Simtek fell by about 1%, while EcoPro BM and Wonik IPS were mostly flat.
By sector, KOSDAQ entertainment/culture and metals sectors rose by about 1%, while retail, machinery & equipment, chemicals, general services, transportation/warehousing, medical precision, manufacturing, and pharmaceuticals were mostly flat. Conversely, printing/publishing, paper/wood, construction, textiles/apparel, telecommunications, IT services, electrical & electronics, transport equipment, food/beverage/tobacco, and other manufacturing sectors were mostly flat. The financial sector fluctuated in flat territory.
The won/dollar exchange rate was recorded at 1,360.5 won, up 1.3 won from the previous day at 9 a.m. in Seoul's foreign exchange market.
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