On the 5th, the KOSPI index jumped 4% at the open. Investor sentiment appeared to recover as expectations grew for progress in U.S.-Iran talks and as demand for artificial intelligence (AI) investments was reaffirmed.
As of 9:05 a.m. that day, the KOSPI index was trading at 6,654.85, up 295.9 (4.65%) from the previous session. Foreign investors were net buyers of 208.2 billion won, lifting the index. Individuals and institutions were net sellers of 62.2 billion won and 148.7 billion won, respectively.
SK hynix(000660) surged 6% and was trading at 1.68 million won, while Samsung Electronics also jumped 5%, reclaiming the 250,000 won level. AI beneficiaries including Samsung Electro-Mechanics(009150) were also strong.
Progress in U.S.-Iran negotiations boosted investor sentiment. U.S. Secretary of State Marco Rubio said that day, "There has been progress in the talks, but a final agreement has not yet been reached," adding, "We hope an agreement will be reached very soon." Treasury Secretary Scott Bessent said, "I think an agreement could be reached today or tomorrow to open the strait and steer this dispute into a more normal phase."
International oil prices also fell sharply on news of the U.S.-Iran talks. West Texas Intermediate (WTI) fell 5.69% to $75.77 per barrel, and Brent crude dropped 5.26% to $79.36. The U.S. 10-year Government Bonds yield also edged down to 4.615%.
AI corporations also reported strong results. Palantir posted an "earnings surprise" in the second quarter and raised its full-year sales outlook, sending its share price up 29%. Caterpillar also raised its sales growth guidance and closed up 6%. The Philadelphia Semiconductor Index (SOX) jumped 7%, Micron 7%, and Marvell Technology 12%.
On the back of this, the three major U.S. stock indexes all surged overnight. The Dow Jones Industrial Average finished up 1.71% at 54,085.88, the Standard & Poor's (S&P) 500 rose 1.79% to 7,736.52, setting a record high, and the Nasdaq Composite climbed 2.59% to 26,584.99.
At the same time, the KOSDAQ index was trading at 789.97, up 9.25 (1.18%) from the previous session. Individuals were net buyers of 156.6 billion won. Foreign investors and institutions were net sellers of 123.5 billion won and 33.6 billion won, respectively.