On the 4th, the KOSPI is up more than 2%, helped by gains in U.S. semiconductor stocks and easing tensions in the Middle East. The KOSDAQ is also up more than 3%. After surging last week and then falling 5% the previous day, the KOSPI is seeing dip-buying on perceptions that the decline was excessive.
The KOSPI opened at 6,351.38, up 93.93 points (1.50%) from the previous trading day. Extending gains after the open, the index was trading at 6,383.33 as of 9:04 a.m..
The early strength is seen as reflecting overnight gains in U.S. stocks. Semiconductor stocks rebounded as strong earnings by major big tech corporations eased concerns about artificial intelligence (AI) investment and profitability. U.S. President Donald Trump canceled a planned strike on Iran, sending international oil prices and U.S. Government Bonds yields lower, which also helped improve investor sentiment.
Large-cap stocks by market capitalization are also rising across the board. Samsung Electronics(005930) is up 1.04%, and SK hynix is up 2.43%.
On the flow side, both foreigners and individuals are net buyers. Foreigners are net buying 170 billion won, and individuals are net buying 144 billion won. Institutions are net buying 328 billion won.
On the 3rd (local time) at the New York Stock Exchange, the Dow Jones Industrial Average rose 693.38 points (1.32%) from the previous trading day to finish at 53,178.41, hitting a record high for the first time in a month. The Standard & Poor's (S&P) 500 rose 1.48% to 7,600.50, and the tech-heavy Nasdaq gained 2.13% to close at 25,913.90.
The rally was led by large technology stocks. Alphabet, Microsoft, Meta and Amazon all rose more than 4%. In particular, Amazon hit an all-time high on the back of growth in its cloud business, Amazon Web Services (AWS). As major corporations' second-quarter results beat market expectations, many said concerns about AI investment had eased considerably.
The decision by President Trump to cancel an Iran strike and mention the possibility of resuming peace talks also served as a tailwind. On expectations of easing tensions in the Middle East, international oil prices plunged and U.S. Government Bonds yields fell.
Han Ji-young, a Kiwoom Securities researcher, said, "The domestic stock market will likely show a strong trend, helped by oversold perceptions after the plunge in July and the sharp drop the previous day, the declines in oil prices and yields due to the president's 'taco,' and the intraday rebound of U.S. semiconductor stocks."
The KOSDAQ is also showing strong gains. The KOSDAQ index opened at 748.19, up 10.84 points (1.47%) from the previous trading day.
Most large-cap stocks by market capitalization are strong. Alteogen(196170) is up 4.68%, and EcoPro BM is up 3.82%. In contrast, Rainbow Robotics is down 1.20%.