The KOSPI index jumped 10% in early trading on the 5th to top the 5,600 level, then has been trading in the 5,500–5,600 range in the morning. It is seen as bargain hunting flowing in after a nearly 20% plunge over the past two days (the 3rd–4th).
At the same time, the KOSDAQ index also surged 10% in early trading to top 1,000, then extended gains through the morning to settle at the 1,100 level.
As of 11:42 a.m., the KOSPI index was up 528.83 (10.38%) from the previous transaction day at 5,622.37. The index opened the day at 5,250.92, then crossed the 5,600 level within five minutes as bargain hunting poured in early. Due to the sharp rise in the KOSPI, a buy-side sidecar was triggered at 9:06 a.m., suspending program trading quote effectiveness for five minutes. After topping the 5,700 level, it gave back part of the gains and has been moving in the 5,500–5,600 range.
Foreigners and individuals are showing strong buying. They are net buying 466.5 billion won and 1.0317 trillion won, respectively. In contrast, institutions are net selling 1.4723 trillion won. Specifically, pension funds with a long-term investment profile have turned to buy with 117 billion won, while financial investment, reflecting individual exchange-traded fund (ETF) flows, is a net seller of 1.421 trillion won.
Most stocks are rising. With 900 advancing, 21 are falling and five are flat. This contrasts with the previous day's 911 decliners, 13 advancers and one flat.
Samsung Electronics jumped 11%, recovering the "190,000 Electronics" mark, while SK hynix also surged 12% to surpass "950,000 Hynix." Hyundai Motor (10.38%), LG Energy Solution (7.19%) and SK Square (12.62%)—all top-cap stocks—are soaring.
By contrast, refiners and shippers, which had been cited as beneficiaries of U.S.-Iran tensions, are plunging. STX Green Logis is down 3%, while Kukdong Oil & Chemicals (7%) and S-Oil (0.55%) are also declining.
Asian markets are also rebounding. Japan's Nikkei 225, which fell more than 3% the previous day, was up 1,376.84 (2.54%) at 50,622.38 as of 11:43 a.m. The Shanghai Composite in China, where the previous day's drop was a milder 0.98%, is up 0.63%. Hong Kong's Hang Seng, down 2% the previous day, is up 1%.
It is seen as investor sentiment being buoyed by bargain hunting after the KOSPI index plunged the previous day, along with expectations that tensions between the United States and Iran will ease.
The New York Times (NYT) reported on the 4th (local time) that the day after the United States and Israel began attacks on Iran, Iranian intelligence authorities made indirect, back-channel contact with the Central Intelligence Agency (CIA) through a third country and offered to discuss terms to end the conflict.
At the same time, the KOSDAQ index was up 131.40 (13.43%) from the previous transaction day at 1,109.84. Opening at 1,023.84, the KOSDAQ index topped the 1,100 level as foreigners turned to buy with 677.1 billion won during the session. With gains exceeding 10%, a buy-side sidecar was triggered early in the session.
While 1,678 stocks are rising, only 57 are falling. EcoPro is surging more than 18%, and top names such as Alteogen, EcoPro BM, Sam Chun Dang Pharm, Rainbow Robotics, ABL Bio and LEENO Industrial are all advancing.