The KOSPI started higher on the 3rd, but the early gains are fading. Investor sentiment improved as U.S. Government Bonds yields cooled from a sharp rise, but domestic and external economic conditions are not favorable.
The KOSPI opened at 6,650.33, up 87.61 points (1.33%) from the previous session. However, the gains soon narrowed, and the index is showing a slight rise below the 6,600 level.
Other corporations, presumed to be buying back shares for Samsung Electronics and SK hynix, are net buyers, but foreigners and institutions are net sellers together. Most large-cap stocks are rising, but the gains are not large.
U.S. stocks rose across the board the previous day. U.S. Government Bonds yields fell as the recent surge eased. Weak U.S. employment data influenced the moves in Government Bonds yields. On the night before, U.S. employment data firm ADP released that private-sector job growth in August was the lowest since January. It also fell short of market expectations.
When employment, a key macroeconomic indicator, is weak, Government Bonds yields fell on expectations that the U.S. Central Bank would find it difficult to rush into currency tightening, and stocks rose.
However, Government Bonds yields remain high, and weak macroeconomic indicators are keeping financial market anxiety intact. In particular, as tensions between the United States and Iran are hardly being resolved, international oil prices continue to rise.
U.S. chipmaker Broadcom reported results that beat market expectations, but its share price fell in after-hours trading following the earnings release. Despite strong results, the stock is seen as lacking upward momentum because the outlook for future earnings fell short of expectations.
Samsung Electronics and SK hynix also opened higher, but the gains are limited due to this overhang. In early trading, the two stocks are up 1%.
In addition, the U.S. Department of Commerce again mentioned additional tariffs on imported semiconductors. On the 2nd, U.S. Commerce Minister Howard Lutnick said semiconductor corporations with production facilities in the United States would be exempt from tariffs, while those without would face tariffs in return for bringing products into the U.S. market. The presidential office immediately said it would work closely with the U.S. side to ensure our corporations do not suffer damage.