As the New York stock market rebounded on bargain hunting, the domestic market also opened higher, shaking off concerns about an artificial intelligence (AI) bubble.
As of 9:07 a.m., the KOSPI index was up 86.08 points (2.15%) from the previous session at 4,090.50. Individuals and institutional investors were net buyers of 274.3 billion won and 105.9 billion won, respectively, driving the index higher. Foreign investors had a net selling advantage of 387.4 billion won.
Most of the top market-cap stocks on the main board were rising. Samsung Electronics and SK hynix, the No. 1 and No. 2 by market value, were up 2.88% and 4.32%, respectively. The previous day, the two corporations fell 4.10% and 1.19%, respectively. LG Energy Solution, Doosan Enerbility, Hyundai Motor, Hanwha Aerospace, and HD Hyundai Heavy Industries were also gaining.
The previous day, the KOSPI index closed at 4,004.42, down 117.32 points (2.85%) from the previous session. The size of the drop was the largest in three months since Aug. 1, when stocks plunged on disappointment over the government's tax reform plan (126.03 points). The index opened down 66.27 points (1.61%) at 4,055.47, gave up the 4,000 level early in the session, and extended losses to as low as 3,867.81 at one point. However, it trimmed losses intraday and recovered the 4,000 level on a closing basis.
The previous day's decline started with controversy over AI overvaluation. Even though Palantir, an AI-based enterprise software company, reported strong results the previous day, it plunged 7.94%, reigniting market concerns about an AI bubble.
Overnight, however, the New York stock market rebounded in just a day, overcoming AI bubble concerns. On Wall Street, the Dow Jones Industrial Average finished up 225.86 points (0.48%) at 47,311.10. The Standard & Poor's (S&P) 500 rose 24.75 points (0.37%) to 6,796.30, and the tech-heavy Nasdaq composite closed up 151.16 points (0.65%) at 23,499.80.
At the same time, the KOSDAQ index was up 17.53 points (1.94%) from the previous session at 919.42. While foreigners were net buyers of 21.1 billion won, individuals and institutional investors were net sellers of 11.8 billion won and 8.2 billion won, respectively.
Among the top market-cap stocks, many names were advancing, including pharmaceutical and biotech shares such as Alteogen, HLB, Peptron, ABL Bio, and LigaChem Biosciences, as well as EcoPro BM, EcoPro, and Rainbow Robotics.
Seo Sang-young, a researcher at Mirae Asset Securities, said, "On the New York market, buying concentrated in a few names such as semiconductors acted as a catalyst to push the market higher, leaving behind the recent declines amid AI overvaluation controversy," and projected, "With anxiety still lingering, a semiconductor reversal could appear."