Despite external variables such as the United States, Japan, and China, the domestic stock market held steady and showed a firm trend. The KOSPI rebounded for the first time in three sessions and rose more than 1%, but the KOSDAQ was held back by negative news for large-cap biotech stocks and ended with only a slight gain.
On the 2nd, the KOSPI index jumped 1.90% (74.56 points) from the previous session to close at 3,994.93. The KOSPI index had trailed the KOSDAQ index over the past two sessions, but it rebounded more than 1% on the day, recouping its losses.
Overnight, the three major U.S. indexes closed lower on negative developments from Japan and China, but the KOSPI index was firm. The three major U.S. indexes were rattled by the Bank of Japan (BOJ) hinting at a rate hike in December and the People's Bank of China (PBOC) saying that "stablecoins and other virtual asset transactions are illegal financial activities."
Foreigners and institutions moved in simultaneously to buy the dip. While individuals alone posted net sales of 1.5764 trillion won, foreigners and institutions bought 1.2207 trillion won and 392.9 billion won, respectively.
In particular, the return of foreign investors had a decisive impact on the gains.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "Foreign fund flows have returned to large-cap semiconductor stocks," adding, "Foreign investors posted net sales of 16.2 trillion won in KOSPI cash last month, but have net bought 600 billion won this month."
Lee Kyung-min, a researcher at Daishin Securities Co., also analyzed, "The dollar-won exchange rate, which was in the 1,470-won range early in the session, fell to the 1,460-won range, improving foreign fund flows, and a positive trend is appearing centered on large-cap stocks."
In particular, the U.S. announcement that it will cut tariffs on Korea-made cars to 15% from 25% and apply it retroactively from the 1st of last month acted as a positive. Auto stocks such as Hyundai Motor and Kia, which had been declining after the APEC summit, rebounded and led the KOSPI higher. Hyundai Motor rose in the mid-2% range, and Kia gained in the high-1% range.
Thanks to Nvidia's strength overnight, AI beneficiaries such as Samsung Electronics and SK hynix also climbed together.
However, the KOSDAQ index, which had posted strong gains for four sessions, saw its upward momentum interrupted. The KOSDAQ index closed at 928.42. It rose only 6.04 points (0.65%) from the previous day.
The decline in the KOSDAQ market was also led by foreign investors. While individuals and institutions were net buyers of 33.9 billion won and 133 billion won, respectively, foreigners sold 141.6 billion won worth.
Large-cap biotech stocks, the bellwethers of the KOSDAQ, were a major drag as they weakened. Weakness in biotech-related shares continues due to Peptron's delay in signing a final contract with Eli Lilly and Company and Caregen's delayed clinical results.
Researcher Lee Jae-won analyzed, "The trend that had shown relative strength compared with the KOSPI index was halted by continued net selling by foreign investors and profit-taking triggered by negative news for large-cap biotech stocks."