After tumbling for two straight days, the KOSPI rebounded more than 3% early on the 9th, recovering the 7,450 level. Overnight strength in U.S. semiconductor stocks drew bargain hunting on perceptions of an excessive decline. Still, with U.S.-Iran military tensions persisting and options expiration overlapping, some expect intraday volatility to remain high.
The KOSPI index opened at 7,486.64, up 239.85 points (3.31%) from the previous session. In early trading, it was fluctuating around the 7,450 level. Foreign investors and institutions were net buyers of 96 billion won and 92 billion won, respectively. Individuals alone were net sellers of 182 billion won.
Large-cap semiconductor stocks that plunged the day before were strong on the back of an overnight rebound in U.S. tech shares. Samsung Electronics was up in the 3% range, and SK hynix was rising around 7%.
Han Ji-young, a Kiwoom Securities researcher, said, "Despite the burden of the U.S.-Iran cease-fire suspension today, bargain hunting driven by perceptions of an excessive three-session plunge, a rebound in U.S. semiconductor stocks, and a 4.1% gain in KOSPI 200 night futures will create buying incentives, making up for the previous day's crash."
Overnight, New York stocks showed a divergent pattern centered on semiconductors. The Dow Jones Industrial Average fell 1.09% and the Standard & Poor's (S&P) 500 slipped 0.28%, but the tech-heavy Nasdaq rose 0.20%. The Philadelphia Semiconductor Index jumped 2.2%, helping improve domestic semiconductor investor sentiment.
Still, U.S.-Iran tensions remain a drag on the market. The United States bombed more than 80 military facilities in Iran and revoked waivers on sanctions for exports of Iranian crude. U.S. President Donald Trump also declared the end of a memorandum of understanding (MOU) for ending the war, signaling the possibility of additional military action.
Afterward, Trump said at a news conference that he did not think "a war with Iran will start again," slightly easing risk-off sentiment.
Seo Sang-young, a Mirae Asset Securities researcher, said, "Trump said a war with Iran has not started again, which eased some market anxiety, and bargain hunting flowed into semiconductor stocks," adding, "Because U.S.-Iran tensions largely triggered profit-taking, a rebound is likely to appear in the domestic market as well."
He added, "News of additional U.S. military strikes came near the close, and with options expiration overlapping, intraday volatility could expand," and said, "Uncertainty surrounding the semiconductor cycle and concerns about global tightening also remain market headwinds."
Meanwhile, the KOSDAQ index opened at 792.99, up 7.99 points (1.01%) from the previous session.
On the previous day's close, the KOSDAQ fell below the 800 level for the first time in about 10 months since September last year, sharply denting investor sentiment. Early this morning, with top market-cap stocks such as Alteogen and EcoPro BM showing weakness, attention is on whether the index can stage a rebound.