Domestic stock markets are expected to open higher, buoyed by a strong performance in U.S. semiconductor stocks. Major semiconductor companies like Samsung Electronics and SK Hynix showed gains of over 1% in pre-market trading, with the KOSPI aiming to re-enter the 7000 range this week. However, the rise in the U.S. 10-year Treasury yield above 5% and potential declines in trading volume ahead of the Chuseok holiday could pose challenges.
On September 18, U.S. markets closed mixed. The S&P 500 index, which is heavily weighted toward large-cap stocks, rose by 12.74 points (0.17%) to finish at 7650.50. The tech-heavy Nasdaq Composite gained 104.25 points (0.39%) to close at 26,522.55, while the Dow Jones Industrial Average fell by 95.40 points (0.18%) to 51,682.64.
Semiconductor stocks, including Micron (+3.9%) and SanDisk (+10.1%), benefited from positive forecasts for memory prices. However, the increase in the U.S. 10-year Treasury yield and heightened volatility due to the simultaneous expiration of futures and options limited the overall gains.
In pre-market trading, most large-cap stocks in South Korea are showing upward trends. As of 8:20 a.m. on September 21, Samsung Electronics was trading at 264,500 won, up 3,500 won (1.34%), while SK Hynix rose by 21,000 won (1.13%) to 1,878,000 won. SK Square increased by 1.20%, and Samsung Electro-Mechanics climbed by 2.38%, reflecting a strong performance in semiconductor and information technology stocks.
Additionally, Hanwha Aerospace rose by 3.15%, while Hyundai Motor (0.96%), LG Energy Solution (0.55%), Samsung Biologics (0.21%), KB Financial (0.29%), Samsung C&T (1.00%), and Samsung Life (0.18%) also saw gains.
This week, remarks from key Federal Reserve officials, including those from the New York and Chicago Fed, along with movements in international oil prices, are expected to significantly impact U.S. Treasury yields and the stock market. The ability of the KOSPI to maintain higher lows will be crucial. The continuation of foreign buying, which turned positive after eight trading days on September 18, will also be a key point to watch.
This month, the U.S. 10-year Treasury yield has surpassed 5%, leading to increased market volatility and a subsequent drop in stock prices, raising macroeconomic concerns among investors. However, following the Federal Open Market Committee (FOMC) meeting on September 16, there is a growing perception that interest rate hikes supported by economic growth and improved corporate profits are manageable for the stock market.
Han Ji-young, a researcher at Kiwoom Securities, projected the KOSPI's range for this week to be between 6500 and 7150. Key variables influencing the index's direction include changes in U.S. long-term interest rates following Fed officials' comments, South Korea's September export figures, the U.S.-China summit, and potential supply gaps ahead of the domestic holiday.
The researcher noted, "Given that the domestic market will only be open for three trading days due to the Chuseok holiday, there is a possibility of increased wait-and-see sentiment, reduced trading volume, and thinner order books, leading to supply gaps. However, this is likely to be a temporary phenomenon, and it is important to avoid interpreting short-term volatility as a significant market shift."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.