Although U.S. stocks rose overnight led by tech shares, the KOSPI started lower on the 28th. Nvidia's strong earnings, which lifted U.S. stocks, had already been reflected in Korea's market the previous day, and news that the U.S. administration is considering imposing a tariff on imported semiconductors is seen as a headwind.
The KOSPI began trading at 6,846.54, down 65.83 points (0.95%) from the previous session. Early losses widened somewhat, with the index weakening around the 6,820 level. In the main board, foreigners and institutions are net sellers together, while individuals are net buyers. However, foreigners are net buyers in the KOSPI 200 futures market.
Share buybacks by Samsung Electronics and SK hynix are estimated to be continuing. Other corporations are net buying, with most purchases concentrated in the electrical and electronics sector.
U.S. stocks rose across the board the previous day. Following Nvidia's earnings release, U.S. employment indicators also showed strength, sending tech shares sharply higher.
Despite the strength in U.S. tech stocks, Samsung Electronics and SK hynix opened lower in Korea's market on the day. After gains the previous day, profit-taking is emerging, and news that the U.S. administration is discussing imposing a tariff on imported semiconductors also appears to be a drag.
According to U.S. media, the Donald Trump administration is reviewing imposing comprehensive new tariffs on imported semiconductors and related finished goods. It is seen as a move to strengthen domestic semiconductor manufacturing capacity.
Brokerages analyzed that if the U.S. administration actually imposes tariffs on imported semiconductors, Korea's companies could be hit. Because the United States imports more than 90% of its cutting-edge semiconductors from Korea and Taiwan, if tariffs are imposed, there is a possibility of higher data center construction costs and constraints on the pace of artificial intelligence (AI) growth.
Among the top market-cap stocks, only a few names such as Samsung Electro-Mechanics(009150) and Hyundai Motor are rising. Samsung Biologics(207940), which released a rights offering worth 3 trillion won on the day, is plunging more than 6%.
While the KOSPI is weakening, the KOSDAQ is repeatedly moving around the flat line. After a slight lower open, the KOSDAQ is attempting a rebound and moving around the 830 level.