The KOSPI closed lower on the impact of rising U.S. Treasury yields. Foreign investors and institutional investors made net sales totaling 3 trillion won in KOSPI regular trading sessions on this day. The securities industry is watching whether investment sentiment toward semiconductors will translate into a boost for the stock market.
On the 30th, the KOSPI index closed at 6,838.04, down 32.77 points (0.48%) from the previous day. The KOSPI opened at 6,943.47, up 72.66 points (1.06%), attempting a rebound for the first time in three days, but ultimately ended the session in the red.
The KOSPI reflected the overnight situation in the New York stock market. On the 29th (local time), the Dow Jones Industrial Average on the New York Stock Exchange closed at 51,349.92, down 131.59 points (0.26%) from the previous trading day. The S&P 500 index fell 12.85 points (0.17%) to 7,670.84, and the NASDAQ Composite Index dropped 22.84 points (0.09%) to 26,797.54.
The stock market is analyzed as having been hit by rising Treasury yields. On the 29th (local time), the U.S. 30-year Treasury yield rose to 5.621% during trading hours. This is the highest level in 24 years since 2002. With interest rates in the 5th% range becoming entrenched, expectations for further additional hikes to the U.S. base rate are gaining momentum. In addition, there are concerns about oil prices as negotiations between the United States and Iran have not made progress.
The securities industry expects a strong market to continue centered on semiconductors despite negative market macro conditions. Semiconductor stocks also rose in the New York stock market, which saw a weak session overnight. Micron rose $17.31 (1.64%) to $1,071.29, SanDisk increased by $16.87 (0.98%) to $1,729.76, and SK Hynix American Depositary Receipts (ADRs) jumped $4.76 (2.62%) to $186.68, among others.
On this day, SK Hynix, one of the top two semiconductor stocks, closed at 1,783,000 won, up 18,000 won (1.02%) from the previous day. Mirae Industrial (8.61%), Shinseong Engineering (2.34%), SK Square (1.52%), and Hanmi Semiconductor (1.39%) showed strong performance. Small- and mid-cap semiconductor equipment companies also rallied. Iotech (4.94%), Jusung Engineering (4.73%), HPSP (4.43%), TCK (1.50%), Wonik IPS (0.92%), and Eugene Technology (0.30%) all rose.
The upward trend in semiconductor stocks is being boosted by news regarding AI infrastructure investment. The IPO (initial public offering) prospectus of Anthropic, which is preparing for an upcoming listing, includes a long-term spending plan for AI computing and infrastructure worth at least $518 billion (approximately 700 trillion won) over the next 10 years.
Jung Hong-sik, a researcher at LS Securities, stated, "We judge that the continuous development of AI will lead to demand for HBM and DRAM with higher capacity and bandwidth, alongside the advancement of computing processors such as GPUs, ASICs, and CPUs," adding, "The warmth in earnings is expected to spread to memory fab expansion, the infrastructure value chain, and the test value chain."
Han Ji-young, a researcher at Kiwoom Securities, said, "If interest rates rise rapidly, the burden on stock prices for growth stocks and semiconductor stocks will increase; conversely, if the sharp surge in interest rates slows down, breathing room may open up for AI-related stocks such as Micron, Meta, and Nvidia," adding, "If expectations for the recovery of Middle East oil exports and Iran negotiations continue, the burden of oil prices will decrease, becoming a tailwind not only for the stock market as a whole but also for interest-rate-sensitive technology stocks."
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