On the 30th, the KOSPI index opened at a record high but turned lower intraday and slid to the 6,660 level before rebounding to reclaim 6,700 on foreign buying.
Despite escalating geopolitical tensions around the Strait of Hormuz and a sharp jump in global oil prices, the market is rebounding on the Federal Open Market Committee (FOMC) holding rates and strong big tech earnings.
As of 11:07 a.m. that day, the KOSPI index was trading at 6,714.73, up 23.83 points (0.36%) from the previous trading day. After starting the day at 6,739.39, the index turned lower intraday but recovered the 6,700 level on foreign buying.
Foreign investors led the gains with a net purchase of 334.3 billion won. Individuals were net sellers of 89.4 billion won, and institutions 215.5 billion won. Among institutions, the national pension funds were net buyers of 140 billion won, but brokerages, where exchange-traded fund (ETF) flows are tallied, were net sellers of 281.9 billion won.
Overnight, the U.S. FOMC kept the benchmark rate unchanged at 3.5%–3.75%. However, the statement released after the hold emphasized inflation and geopolitical risks, highlighting vigilance over inflation.
After former Federal Reserve Chair Jerome Powell said, "The current policy rate is sufficiently restrictive, and the likelihood of additional hikes is low," market anxiety eased. Powell also said he would remain on the Fed's Board of Governors.
Big tech delivered an "earnings surprise" (results beating market expectations). Four big tech corporations—Microsoft (MS), Alphabet (Google), Meta and Amazon—all posted revenue and earnings per share (EPS) that topped market forecasts.
However, the U.S. saying it would maintain its maritime blockade of Iran indefinitely, rekindling tensions around the Strait of Hormuz, is a drag.
Global oil prices surged again, heightening inflation concerns. Brent crude June futures jumped 5.79% from the previous trading day to settle at $110.44. Intraday, they hit $119.76, the highest level in four years since June 2022.
Among individual stocks, LG Electronics jumped 5% on expectations of a robotics collaboration with Nvidia. Samsung Electronics rose 0.33% to 220,000 won, and SK hynix gained 1.16%, trading around 1.3 million won.
At the same time, the KOSDAQ index was trading at 1,212.19, down 8.07 points (0.66%) from the previous trading day. Individuals were net buyers of nearly 300 billion won, but foreigners and institutions were net sellers of 175.2 billion won and 75.3 billion won, respectively, dragging the index lower.
With robotics shares such as Rainbow Robotics and NAU Robotics strong, secondary-battery names including EcoPro and EcoPro BM and biotech names such as Alteogen, Sam Chun Dang Pharm and Kolon TissueGene were weak.