The KOSPI index opened lower on the 9th. Although a cease-fire deal between the United States and Iran boosted appetite for global risk assets, the move is seen as profit-taking after the KOSPI index surged the previous day.
The KOSPI index started trading at 5,826.45, down 45.89 points (0.78%) from the previous session. Individuals are net buyers, while foreigners and institutions are net sellers. However, foreigners are net buyers in the KOSPI 200 futures market. The early decline widened to around 1% but narrowed again, with the index moving near the 5,800-point level.
Overnight, U.S. stocks rose across the board. News of a two-week cease-fire agreement between the United States and Iran boosted preference for global risk assets. U.S. Vice President JD Vance said on the 11th that the United States and Iran would hold talks.
However, geopolitical risks in the Middle East have not been fully resolved. After the first cease-fire agreement since the outbreak of war, some oil tankers passed through the Strait of Hormuz, but instability persists as Iran considers retaliation for Israel's attacks.
Minutes from the March meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve, released the previous day, also appeared to affect investor sentiment. Some members mentioned the need for rate hikes.
According to the minutes, at last month's meeting, members said it was still difficult to assess the economic impact of the Iran war, while some said rate hikes could be necessary if inflation risks increase.
Experts said the United States and Iran agreed to a cease-fire, but instability will likely persist for the time being, advising investors to focus more on risk management than aggressive positioning.
In the Korea Exchange, semiconductor shares that surged the previous day, including Samsung Electronics, SK hynix, and HANMI Semiconductor, fell early in the session, while construction and financial sectors were also weak. Meanwhile, APR, which released strong earnings, is soaring more than 10%.
The KOSDAQ market opened lower but is attempting a rebound. The KOSDAQ index opened down 0.6%, but the early decline narrowed. It even turned higher after reclaiming the 1,090-point level early in the session. Sam Chun Dang Pharm, which had plunged recently, is rebounding sharply.