Stocks opened higher as expectations for U.S. rate cuts recovered. With U.S. stocks all rising overnight, foreign funds are flowing into the domestic market.
On the 25th, the KOSPI started at 3,942.36, up 96.30 points (2.50%) from the previous trading day. However, as the strength of foreign inflows weakened somewhat in early trading, the index's gains narrowed. As of 9:30 a.m., the KOSPI was up around 1.4% and rising around the 3,900 level.
Foreign investors are net buyers, but the size of the net purchases is gradually shrinking. Institutions and individuals are net sellers.
U.S. stocks in New York closed higher across the board overnight. As expectations for a December base rate cut, which had been clouded by uncertainty, revived, investor sentiment recovered. Mary Daly, president of the Federal Reserve Bank of San Francisco, said she supports a December base rate cut, sending a strong message to the market.
Daly is classified as a moderate within the Federal Reserve System. When Daly presented a clear stance on the rate decision, expectations for cuts returned. She noted that the U.S. labor market is in a weak situation and assessed that inflation risks have diminished.
There was also news that led gains in tech stocks. It was confirmed that the technology level of the artificial intelligence (AI) model "Gemini 3," recently unveiled by Google, is quite advanced. The successful testing of Gemini 3's capabilities appears to be bolstering confidence in AI profitability.
As "AI bubble" concerns have weighed on global markets recently, rising confidence in the profitability of AI businesses sent the Nasdaq in the U.S. sharply higher.
In the domestic market, semiconductor names such as Samsung Electronics and SK hynix are also rising sharply. Among large-cap stocks, SK Square is climbing significantly. In contrast, NAVER is declining.
The KOSDAQ is also on the rise. The KOSDAQ opened at 867.84, up 11.40 points (1.33%) from the previous day, and is maintaining gains around the 860 level during the morning session.