On the 7th, the KOSPI opened higher and recovered the 6,400 level early in the session. After the index plunged nearly 5% the previous day and rebounded in a day, foreigners are net buyers, leading the index higher.
The KOSPI started at 6,365.07, up 68.69 points (1.09%) from the previous trading day. Expanding its gains, it rose to 6,411.69 as of 9:08 a.m..
The previous day, the KOSPI fell 4.58% to close at 6,296.38, declining for the first time in three trading days. At one point intraday, it slipped to 6,238.32, down 5.46%, triggering a sell-sidecar. Today, it is rebounding from early trading, retracing part of the prior day's losses.
In the Korea Exchange main board, foreigners are net buyers of 297.0 billion won. In contrast, individuals are net sellers of 269.0 billion won. Institutions are also small net buyers.
Top market-cap stocks are mixed. Samsung Electronics(005930) and SK hynix are up 3.04% and 1.47%, respectively. In contrast, Hyundai Motor(005380) and Samsung Biologics are down 0.63% and 0.20%, respectively.
Overnight, the three major New York stock indexes fell together amid caution over major corporations' earnings reports and geopolitical tensions in the Middle East. The Dow Jones Industrial Average fell 0.85%, the Standard & Poor's (S&P) 500 fell 0.18%, and the tech-heavy Nasdaq fell 0.06%.
International oil prices also rose. Geopolitical concerns grew again on news that Iran's parliament is reviewing a bill to restrict the passage of U.S. and Israeli ships through the Strait of Hormuz. Reports that an explosion was detected off the coast of Oman near a tanker passing through the strait also weighed on sentiment.
West Texas Intermediate (WTI) rose 2.75% to $77.29 per barrel, and Brent crude gained 3.83% to $82.49. As higher oil prices raised concerns about reigniting inflation, the yield on the U.S. 30-year Treasury rose to 5.21% and the 10-year to 4.67%.
Han Ji-young, a Kiwoom Securities researcher, said, "The domestic stock market is expected to attempt a rebound on the back of renewed uncertainty in the Strait of Hormuz, caution over U.S. jobs in July, the pre-pricing of weakness in U.S. semiconductor stocks, and bargain hunting after the previous day's plunge."
She added, "From Aug. onward, over four trading days, the KOSPI has repeatedly risen and fallen, with two sell-sidecars and one buy-sidecar triggered, leaving it exposed again to correction pressure," and "Meanwhile, as the KOSDAQ has posted gains for four straight trading days on perceptions of oversold conditions, doubts are growing about the continuity of the KOSPI's rebound."
The KOSDAQ is also extending gains. The KOSDAQ index opened at 807.62, up 5.95 points (0.74%) from the previous trading day, and is maintaining gains of around 1% early in the session.
Top market-cap stocks are generally strong as well. EcoPro(086520) is up 8.25%, and EcoPro BM is up 6.63%. In contrast, Rainbow Robotics is down 2.15%.