KOSPI has surged over 15% in early trading, buoyed by a significant rise in U.S. big tech and semiconductor stocks. Following a steep decline in the domestic market over the past three days, a wave of bargain hunting has triggered circuit breakers in both the KOSPI and KOSDAQ markets.
As of 9:35 a.m. on July 31, the KOSPI index rose 841.40 points (15.04%) to reach 6,434.96. The index opened 64.23 points (1.15%) higher at 5,657.79 and quickly expanded its gains, recovering above the 6,400 mark.
In overnight trading, the New York Stock Exchange closed higher as the June Personal Consumption Expenditures (PCE) price index met market expectations, and strong earnings from Microsoft and optimistic forecasts for Amazon boosted investor sentiment. Semiconductor stocks, including Micron (up 18.4%) and SanDisk (up 26.0%), showed significant gains, alleviating some of the recent concerns surrounding semiconductor investments.
In the KOSPI market, foreign and institutional investors have net purchased 55.994 trillion won and 857 billion won, respectively, while individual investors have net sold 57.353 trillion won.
Among the top market capitalization stocks, SK Square (up 29.92%), SK Hynix (up 24.81%), Samsung Electronics (up 20.77%), Samsung C&T (up 18.54%), Hyundai Motor (up 8.55%), and Kia (up 7.45%) are all showing strong performance.
At the same time, the KOSDAQ index recorded a gain of 52.31 points (8.11%), reaching 697.09. The index opened 21.69 points (3.36%) higher at 666.47 and is continuing to rise.
In the KOSDAQ market, foreign and institutional investors have net purchased 823 billion won and 725 billion won, respectively, while individual investors have net sold 1.574 trillion won.
Among the top KOSDAQ stocks, JUSUNG Engineering (up 27.06%), Wonik IPS (up 24.90%), Rino Technology (up 14.49%), Rainbow Robotics (up 11.66%), EcoPro (up 10.06%), EcoPro BM (up 6.22%), ABL Bio (up 5.59%), and Alteogen (up 2.86%) are all experiencing upward trends.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The strong earnings from major big tech companies like Microsoft and Amazon have eased concerns about the AI investment cycle, and expectations are growing for the end of the deleveraging in the global semiconductor sector. The sharp rise in KOSPI 200 night futures and the perception of excessive declines are likely to lead to a strong rebound in the domestic market."
He added, "The recent reduction in the market influence of single-stock leveraged products, along with improved visibility in semiconductor sector earnings, suggests that there are favorable conditions for upward movement in terms of stock prices and valuations."
* This article has been translated by AI.
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