The KOSPI ended higher on the 12th as institutions bought heavily on a net basis. Institutions bought a net amount close to 1.5 trillion won. U.S. tech stocks tumbled after Oracle released an earnings shock and Broadcom released a sales outlook below expectations, but semiconductor shares were strong in the domestic stock market.
The KOSDAQ, by contrast, posted only a modest gain as investor sentiment in biotech weakened on the fallout from a patent dispute involving market bellwether Alteogen.
The KOSPI closed at 4,167.16, up 56.54 points, or 1.38%, from the previous trading day. The index opened slightly higher at 4,123.83 and widened gains intraday to approach 4,170. It then turned lower to the 4,140 level before rebounding to reclaim the 4,160 level into the close.
Institutional investors led the rise. In the main board, institutions alone posted net purchases of more than 1.4 trillion won for the day. Foreigners were also modest net buyers.
Nine of the top 10 KOSPI market-cap stocks rose. In particular, after U.S. Broadcom posted results that beat market expectations, artificial intelligence (AI) leaders Samsung Electronics and SK hynix ended up more than 1%. Hyundai Motor (2.2%), Doosan Enerbility (3.1%), and Hanwha Aerospace (5.64%) also finished higher.
In the United States, talk of an artificial intelligence (AI) bubble is rekindling. After Oracle released results that fell short of expectations, Broadcom delivered an earnings surprise, but its revenue outlook disappointed. Still, these concerns did not have a major impact on the local market that day.
Lim Jeong-eun, an analyst at KB Securities, said, "Semiconductor shares rose as the market digested the shock from Oracle," adding, "With massive institutional buying flowing in, the KOSPI rebounded for the first time in four sessions."
The KOSDAQ edged up. The KOSDAQ closed at 937.34, up 2.70 points, or 0.29%, from the previous day. The index started slightly lower at 933.99 but soon turned higher to approach 938. It then fluctuated between 934 and 938 and slipped to the 933 level before turning higher in the afternoon and closing the session.
In the KOSDAQ market, institutions net bought 173.7 billion won and foreigners 31 billion won. Biotech, which has a large weight in the KOSDAQ, weakened. Alteogen, which was sued in the United States by competitor Halozyme seeking to invalidate its patent, fell more than 4%. ABL Bio (3.21%), LigaChem Biosciences (5.82%), and Sam Chun Dang Pharm (3.38%) and other biotech and pharma names also declined in a row.
The securities industry is eyeing key U.S. economic indicators to be released next week. The United States will release October retail sales, November nonfarm payrolls, and November consumer price index (CPI) in succession. As core gauges of consumption, jobs, and prices, the results are expected to determine whether the rate-cutting stance will be maintained.
Bank of Japan (BOJ) policy is another focal point. BOJ Governor Kazuo Ueda has hinted at the possibility of a rate hike, reviving concerns about unwinding "yen carry trades." If Japan actually raises rates, higher yen funding costs could trigger capital outflows from global markets, analysts say.
Lim Jeong-eun, an analyst at KB Securities, said, "As the possibility of a BOJ rate hike resurfaces, concerns about unwinding yen carry trades are spreading," adding, "It is necessary to watch the policy outcome closely."