On the 10th, the KOSPI index has been seesawing. As instability in the Middle East continues, preference for risky asset has waned, but a global memory supply shortage persists, leading investors to take a wait-and-see stance.
The KOSPI opened at 7,038.85, down 12.79 points (0.18%). The index attempted a rebound right after the open but turned lower again. However, the decline is not large, and as of 9:20 a.m., it is holding the 7,000 level.
In the stock market, foreigners and institutions are net sellers together. The selling scale is not large, but orders are coming mainly from heavyweight sectors such as electric and electronics. Pension funds and individuals are net buyers.
Overnight, U.S. stocks fell across the board. The U.S. Treasury conducted a long-term Government Bonds buyback that fell short of market expectations for addressing rising yields, while ongoing conflicts in the Middle East sent international oil prices sharply higher.
The U.S. Treasury said on the 10th it will buy back up to $6 billion in long-term Government Bonds. That is smaller than the $8 billion to $10 billion expected by market experts. As a result, U.S. Government Bonds yields rose instead.
Even with sentiment toward risky asset weakened, shares of SK hynix listed in the United States jumped sharply on concerns about a shortage of memory chips. Micron also gained nearly 3%, extending strength in semiconductor stocks.
In the domestic market, Samsung Electronics is falling, while SK hynix(000660) and SK Square are edging higher.
The KOSDAQ index is falling by a relatively larger margin. It started at 825.06, down 5.31 points (0.64%), and in early trading fell more than 1.5% to the 810 level. Both bio and secondary battery sectors are weak. Profit-taking is also emerging in semiconductor materials, parts, and equipment stocks that had surged recently.