The KOSPI is poised to continue its upward trend for a fifth consecutive trading day on August 14, buoyed by easing inflation pressures in the U.S. and strong performance in semiconductor stocks. Concerns over additional interest rate hikes by the U.S. Federal Reserve have subsided, with both Samsung Electronics and SK Hynix showing gains in pre-market trading.
According to NextTrade, as of 8:30 a.m., SK Hynix shares were trading at 1,682,000 won, up 89,000 won (5.59%) from the previous trading day. Samsung Electronics also saw an increase of 7,500 won (2.80%), reaching 275,500 won. The positive sentiment surrounding domestic semiconductor stocks is attributed to the strong performance of semiconductor and tech stocks in the U.S. markets overnight.
U.S. stock markets closed higher, driven by lower-than-expected producer price index (PPI) data. On August 13 (local time), the Dow Jones Industrial Average rose by 69.72 points (0.13%) to close at 53,839.99. The S&P 500 index gained 50.49 points (0.65%), reaching a record closing high of 7,798.99. The tech-heavy Nasdaq Composite also increased by 214.54 points (0.81%), finishing at 26,803.03.
The stability in both consumer and producer prices has alleviated fears of further interest rate hikes by the Fed, boosting investor sentiment. The U.S. PPI for July showed no change from the previous month, falling short of the market expectation of a 0.2% increase. The yield on the 10-year U.S. Treasury note dropped by about 4.7 basis points to 4.645%.
With the easing of interest rate pressures, buying interest in semiconductor stocks has surged. SanDisk saw a significant jump of 13.67%, while SK Hynix's American Depositary Receipts (ADRs) rose by 7.29%, and Micron increased by 4.23%. Nvidia also gained 0.54%. However, the Philadelphia Semiconductor Index, which had risen by as much as 2.46% during the day, saw its gains reduced to 0.46% due to profit-taking.
Attention is now focused on whether the KOSPI can maintain its upward momentum, particularly with Samsung Electronics and SK Hynix leading the charge. Han Ji-young, a researcher at Kiwoom Securities, noted, "This week’s confirmation of strong demand for AI infrastructure, along with reduced concerns over a September rate hike by the Fed and a shift to net buying by foreign investors, has driven the KOSPI's strength," adding that the performance gap with the KOSDAQ, which lagged last week, has narrowed.
He cautioned that there may be some adjustments due to profit-taking pressures but expressed optimism, stating, "Considering the improved market resilience and quality of supply and demand compared to the past, the market is likely to continue on a recovery path, consistently raising its lows."
* This article has been translated by AI.
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