Even though semiconductor stocks plunged on Wall Street overnight, on the 3rd Korea's stock market opened higher. But it is searching for direction, moving up and down around the 7,700 level.

In the afternoon on the 2nd, closing figures including KOSPI appear on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. /Courtesy of News1.

As of 9:08 a.m. that day, the KOSPI index was trading at 7,670.74, up 22.65 (0.3%) from the previous session. After opening higher, the index has been seesawing around the 7,650 level.

Individuals are net buying 435.2 billion won, while foreigners are net selling 456.2 billion won, dragging down the index. Institutions are net selling 900 million won.

Samsung Electronics is up 3% around 290,000 won as bargain hunting flows in. SK hynix is up 1% around 2.2 million won.

Overnight, U.S. stocks, the barometer for the domestic market, extended sharp losses for a second day, led by semiconductor names. Micron Technology plunged 5.49%, and Broadcom (2.41%), AMD (4.26%), Intel (5.25%), and Marvell Technology (9.84%) were also weak.

The move reflected concern that AI infrastructure supply has entered an oversupply phase after news that Meta would sell surplus artificial intelligence (AI) computing. The market worries that as hyperscalers slow capital expenditure (CAPEX), demand for semiconductors that benefit from it will also slow.

Meanwhile, U.S. employment data released the previous day missed expectations. U.S. nonfarm payrolls in June rose by 57,000 from the prior month, far below the market forecast for an increase of 115,000. As a result, on the Chicago Mercantile Exchange (CME) FedWatch, the probability that the Central Bank (Fed) will hold its benchmark rate through December rose to 23% from 17%.

At the same time, the KOSDAQ index was trading at 852.72, down 14 (1.62%) from the previous session. After opening higher, the index quickly turned lower and extended losses. It even gave up the 850 level intraday.

While foreigners are net selling 54.1 billion won, individuals and institutions are net buying 45.8 billion won and 7 billion won, respectively. Jusung Engineering, which surged 20% the previous day, is down 8%. EcoPro BM, which launched a 1.2 trillion won rights offering, and holding company EcoPro are plunging 5%.

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