The Kospi managed to hold the 5,000-line threshold following a sharp downturn during the first week of November, dropping 40.84 points, or 0.81%, to close at 5,018.85 on November 9, The Scoop reported.
While neighboring Asian markets rallied significantly on the back of rebounding U.S. tech stocks, South Korea’s benchmark index headed backward. Japan’s Nikkei 225 index climbed 2.33% to close at 58,775.50, and Taiwan’s Taiex surged 4.94% to 41,661.70, according to data compiled by The Scoop. The rallies followed a 1.09% increase in the Nasdaq index and a 4.21% gain in the Philadelphia Semiconductor Index on November 6.
The Kospi attempted a recovery during the trading session, rising more than 2% at one point to reach 5,172.94 after dipping as low as 4,990.66 in early trading. However, relentless foreign selling wiped out those gains entirely. Foreign investors extended their net selling streak to seven consecutive sessions on the Korea Exchange. Institutional buying attempted to cushion the blow, but failed to halt the downward pressure.
Market heavyweights Samsung Electronics and SK Hynix managed slight recoveries, gaining 0.64% and 0.35% respectively. Secondary battery and biotech shares suffered steep losses, with LG Energy Solution tumbling 5.78%, Alteogen plunging 16.01%, and Ecopro dropping 8.46% on the Kosdaq market.
Attention shifted immediately to the overnight trajectory of the New York Stock Exchange. Major U.S. indices jumped more than 2% on November 9, driven by easing inflation concerns stemming from falling international oil prices and tech sector bargain hunting. The Dow Jones Industrial Average rose 2.16%, the S&P 500 gained 2.34%, and the Nasdaq Composite advanced 2.73%, while the Philadelphia Semiconductor Index surged over 6%, The Scoop reported.
Crude oil prices fell after U.S. President Donald Trump indicated that the likelihood of further military strikes against Iran might decrease if negotiations progress. This drop in oil prices stoked expectations of reduced inflationary burdens on global equities.
Despite the broader technology sector rally, Nvidia shares fell 5.4% following news that the company’s board of directors decided to investigate allegations regarding foreign intelligence agency access targeting CEO Jensen Huang. Nvidia maintained that there is no reason to believe national security or company secrets were compromised.
Market observers are monitoring whether the overnight U.S. stock surge can rescue the Kospi from its losing streak, though persistent foreign outflows and Nvidia’s slump remain headwinds. An additional wild card arrives with the release of the U.S. Consumer Price Index for October, which could revive interest rate hike concerns from the Federal Reserve if inflation pressures prove stubborn.
