The KOSPI index soared 6% in a day to reclaim the 7,200 level. Hopes for rate cuts on the back of cooling U.S. inflation and a tech rally tailwind flowed directly into the domestic market, and powerful, simultaneous buying by foreigners and institutions drove the index's surge.
On the 15th, the KOSPI index finished at 7,284.41, up 427.58 points (6.24%) from the previous session. The KOSPI opened at 7,082.91, up 226.08 points (3.30%), then swiftly recaptured the 7,200 level and settled in the 7,280s as buying by foreigners and institutions rapidly expanded.
Right after the open, a "buy sidecar" was triggered as KOSPI futures prices spiked, temporarily suspending the effectiveness of program buy orders. This is the 18th buy sidecar triggered in the KOSPI market this year.
In the main board, a "two-pronged" buying spree by foreigners and institutions stood out. Foreigners were net buyers of 2.6763 trillion won, and institutions bought a net 455.4 billion won, lifting the index. By contrast, individuals, who had held on during the plunge, alone dumped 3.1479 trillion won to take profits.
Overnight on Wall Street, the tech-heavy Nasdaq rose 0.90%, and SK hynix American depositary receipts (ADR), on their third trading day on the Nasdaq, jumped 27.29% in a day to $193.92, igniting domestic investor sentiment.
Global investment bank Barclays added to the tailwinds by setting a target price of $330 for SK hynix ADR, citing continued shortages in memory chip supply.
In the main board, SK hynix(000660) closed at 2,082,000 won, up 8.83% (169,000 won) from the previous session.
Samsung Electronics(005930) also ended the session at 279,500 won, up 6.27% (16,500 won). Key players in the semiconductor value chain, Samsung Electro-Mechanics(009150) (12.14%) and SK Square(402340) (16.13%), cited as indirect beneficiaries of SK hynix, also surged together.
The U.S. Labor Department's released June consumer price index (CPI) rose 3.5% from a year earlier, below market expectations (3.8%) and the prior month's 4.2%, which appears to have influenced the domestic market's rise. As the Federal Reserve's (Fed) path toward cutting the benchmark interest rate became more visible, risk appetite in global markets for risk assets rebounded sharply.
The KOSDAQ market also maintained a strong tone all day after a buy sidecar was triggered 17 minutes after the open. Starting at 805.71, up 21.73 points (2.77%) from the previous session, the KOSDAQ index extended gains steeply and closed at 829.44, soaring 45.46 points (5.80%).
In the KOSDAQ market, institutions and foreigners were net buyers of 107.0 billion won and 44.6 billion won, respectively, while individuals were net sellers of 162.5 billion won.