On the 25th, the KOSPI opened down more than 2% on weakness in U.S. semiconductor stocks and the previous day's sharp drop. Samsung Electronics and SK hynix also failed to rebound early in the session and are trading lower together. The KOSDAQ opened down 0.8% and widened losses to fall nearly 3%.
The KOSPI opened at 6,535.93, down 161.03 points (2.40%) from the previous session. As the decline continued, it was down 3.51% at 6,461.75 as of 9:11 a.m.
In the main board, foreigners are net sellers of 627 billion won. Individuals are net buyers of 526 billion won, and institutions are net buyers of 56 billion won.
Most large-cap stocks by market capitalization are also weaker. Samsung Electronics(005930) is down 3.50% from the previous session, and SK hynix is down 5.21%. SK Square and Samsung Electro-Mechanics are down 6.32% and 5.69%, respectively.
Overnight, New York stocks ended mixed as selling emerged in semiconductor and technology names. The Standard & Poor's (S&P) 500 fell 21.51 points, or 0.28%, to 7,652.86, and the tech-heavy Nasdaq lost 200.26 points, or 0.76%, to 25,980.19. In contrast, the Dow Jones Industrial Average rose 140.15 points, or 0.26%, to 53,417.16.
Losses were pronounced in semiconductor stocks. Micron plunged 5.83%, and AMD and Broadcom fell 3.49% and 2.63%, respectively. Nvidia, set to report earnings on the 26th, fell 2.9%. SanDisk and Seagate also slid more than 6%. The Philadelphia Semiconductor Index fell 2.70%, and SK hynix American depositary receipts (ADR) fell 4.92%.
The correction seen in Korean semiconductor stocks after Samsung Electronics' shareholder-return announcement extended to the U.S. market. Investor caution ahead of Nvidia's earnings also appeared to dampen sentiment across semiconductor stocks. Nvidia fell for a seventh straight session.
Han Ji-young, an analyst at Kiwoom Securities, said, "We view the previous day's market weakness as a short-term factor driven by Samsung Electronics' shareholder-return 'sell-on-news' and positioning volatility ahead of Nvidia's earnings, rather than a crack in fundamentals," adding, "Today, with the view that U.S. semiconductor corrections have been priced in, easing in the surge of U.S. interest rates, weakness in West Texas Intermediate (WTI) crude, and an improving macro backdrop, along with bargain hunting in semiconductor stocks after the sharp drop, the market will attempt a rebound."
The KOSDAQ also opened lower. The KOSDAQ index started at 806.93, down 6.40 points (0.79%) from the previous session. It then deepened losses and fell below the 800 level.
Most large-cap stocks by market capitalization are declining. Alteogen(196170) and EcoPro BM are down 5.30% and 7.51%, respectively. Hanmi Pharmaceutical, which hit the daily limit the previous day on news it signed a 3 trillion won technology export deal for an obesity drug with Genentech in the United States, is down 4.26% on profit-taking.