The KOSPI and KOSDAQ indices are both up by around 1% in early trading. Despite concerns over rising U.S. long-term Treasury yields, a rebound in artificial intelligence (AI) and semiconductor stocks, along with a wave of buying following recent declines, is lifting the indices.
According to the Korea Exchange, as of 9:07 a.m., the KOSPI rose 61.46 points (0.89%) to 6,932.27 compared to the previous trading day.
In the securities market, foreign and institutional investors are net buying 61.5 billion won and 16.5 billion won, respectively, while individual investors are net selling 94.5 billion won.
Among the top market capitalization stocks, Samsung Electronics is trading at 274,500 won, up 0.73%. SK Hynix has increased by 1.81% to 1,797,000 won. Other gainers include SK Square (1.61%), Samsung Electro-Mechanics (1.57%), and LG Energy Solution (0.85%). Conversely, Samsung Biologics (-0.65%), KB Financial (-0.63%), and Samsung Life (-0.34%) are experiencing declines.
At the same time, the KOSDAQ index is up 9.69 points (1.14%) to 859.49 compared to the previous trading day. Foreign and individual investors are net buying 9.6 billion won and 18.3 billion won, while institutions are net selling 15.4 billion won.
Most of the top KOSDAQ stocks are performing well. HPSP has surged by 6.39%, while other gainers include IOTech (5.15%), Wonik IPS (2.92%), EcoPro BM (2.83%), JUSUNG Engineering (2.70%), EcoPro (2.28%), and Rainbow Robotics (2.28%). On the downside, Alteogen (-0.20%) and Simtek (-1.18%) are struggling.
Overnight, U.S. markets closed slightly lower due to concerns over rising long-term Treasury yields. The Dow Jones Industrial Average fell by 0.26%, the S&P 500 dropped by 0.17%, and the Nasdaq Composite decreased by 0.09%. However, gains in AI and semiconductor stocks, including a 1.1% rise in Micron and a 3.2% increase in Meta, supported investor sentiment in the domestic market.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to open higher, supported by the decline in the U.S. 10-year Treasury yield in late trading and the successful rebounds of AI and semiconductor stocks like Micron and Meta."
He noted that foreign investor activity will be a key point to watch during the trading session. A researcher mentioned, "In the last two trading days of September, foreign investors sold approximately 6.2 trillion won in the KOSPI, with about 87% of the total sales concentrated in semiconductors. This was influenced by short-term profit-taking in Samsung Electronics and the pressure from rising U.S. interest rates, as well as the impact of global pension fund rebalancing at the end of the quarter."
However, he predicted that the intensity of foreign selling due to quarter-end rebalancing would be more limited than in June. He added, "While there is potential for global fund rebalancing to lead to net selling by foreign investors in Korea, the amount of selling related to rebalancing is expected to be limited. It is important to reflect in our response strategy that mechanical supply changes, such as adjustments in weight, will not alter the medium-term direction."
* This article has been translated by AI.
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