On the 4th, the KOSPI index opened sharply higher and is once again setting an intraday record high. SK hynix, the No. 2 stock by market capitalization in the domestic market, is at an all-time high. The gains in U.S. stocks over the weekend appear to be reflected in the domestic market.
That day, the KOSPI index started trading at 6,782.93, up 184.06 points (2.79%) from the previous session. With large-cap chipmakers showing strength, foreigners and institutions are net buyers together, extending an early surge of more than 2%.
As of 9:40 a.m., foreigners in the main board are net buying nearly 800 billion won, lifting the index. Institutions are also net buying 236.1 billion won. Individuals are net selling 871 billion won.
The KOSDAQ market is strong as well. The KOSDAQ index opened at 1,211.63, up 19.28 points (1.62%), and its gains have widened somewhat. In the KOSDAQ market, only foreigners are net buying 409.4 billion won.
Large-cap chip stocks are leading the index higher. Samsung Electronics is up more than 2%, and SK Square, the largest shareholder of SK hynix, is up more than 12%. Like SK hynix, SK Square also hit an all-time high. Buying appears to be gathering strength on the back of strong earnings by global big tech and expanded investment in artificial intelligence (AI) production facilities. Samsung Electro-Mechanics also surged, setting another all-time high.
Over the weekend, New York stocks hit a record high for major indexes on expectations for an end to the U.S.-Iran conflict and Apple's strong earnings.
On the 1st (local time), when Korea's market was closed, the Standard & Poor's (S&P) 500 index ended at 7,230.12, up 21.11 points (0.29%) from the previous session, renewing a record high for the second straight day. The Nasdaq composite also ended higher.
However, with U.S. President Donald Trump declaring the launch of the "Liberation Project" to safely free third-country ships trapped in the Strait of Hormuz, there remains the possibility that risk aversion could rise.
On the 3rd, President Trump said on his social media, Truth Social, "Countries around the world have asked the United States if we can help free their ships trapped in the Strait of Hormuz," adding, "Through my delegation, we will do our utmost to safely get their ships and crews out of the strait."
Earlier, President Trump was said to have made clear he could not accept a 14-point cease-fire proposal counteroffered by Iran. In that context, he declared that, with the U.S. military, starting that morning Middle East time, he would support the safe passage of cargo ships and oil tankers in the Strait of Hormuz. As this news spread, international oil prices fell.
As earnings season continues, shares of companies that released "surprise earnings" are also strong. Sanil Electric and POSCO Holdings, which reported solid results, are surging.