As U.S. stocks rose on eased fears of rate hikes due to slowing hiring and strength in artificial intelligence (AI) tech shares, Korea's market also opened higher on the 10th.
As of 9:10 a.m., the KOSPI index was trading at 6,363.69, up 104.92 (1.68%) from the previous session. After a firm open, the index is widening its intraday gains.
Retail investors are net buying 194.7 billion won, lifting the index. Foreign investors and institutions are net selling 156.6 billion won and 43.4 billion won, respectively.
Samsung Electronics(005930) and SK hynix are both up 3%. They are trading around 230,000 won and 1.46 million won, respectively. Samsung Electro-Mechanics is surging 5%.
U.S. July jobs data eased concerns about Federal Reserve rate hikes. July nonfarm payrolls, released on the 7th, fell by 23,000, well below the market forecast for an increase of 85,000.
Accordingly, the market's September Federal Open Market Committee (FOMC) rate outlook showed the hold probability (55.6%) topping the hike probability (44.4%) for the first time in a month. If rates are held, the discount rate burden on growth stocks eases, and big tech companies' AI capital expenditure (CAPEX) funding burden is reduced.
New York stocks ended higher. On the 7th, the U.S. Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.6%, and the Nasdaq advanced 1.3%. Growth stocks, including AI names, were strong. The Philadelphia Semiconductor Index climbed 2.6%, and Nvidia rose 2.27%.
At the same time, the KOSDAQ index was trading at 814.58, up 15.77 (1.97%). Foreign investors are net buying 38.6 billion won and institutions 9.9 billion won. Retail investors alone are net selling 48.2 billion won. Alteogen(196170) is surging 6.39% to 320,000 won.