The KOSPI index has recovered above the 7000 mark, buoyed by strong semiconductor stocks despite rising military tensions in the Middle East and increasing international oil prices. Although U.S. markets have declined for two consecutive trading days, investor sentiment remains supported by the resurgence of semiconductor and artificial intelligence (AI) stocks. Analysts view the recent resistance around the 7000 level as a process of absorbing selling pressure rather than a trend reversal.
As of 9:11 a.m. on September 9, the KOSPI was trading at 7001.01, up 46.49 points (0.67%) from the previous trading day. The index opened at 6972.87, rising by 18.35 points (0.26%) before expanding its gains to recover the 7000 level.
Among investors, individuals have net purchased 232.3 billion won, while foreign and institutional investors have net sold 141.3 billion won and 134.1 billion won, respectively.
In terms of market capitalization, semiconductor stocks are showing upward momentum. Samsung Electronics rose by 0.09%, SK Hynix by 1.34%, Samsung Electro-Mechanics by 2.70%, LG Energy Solution by 0.57%, Hyundai Motor by 0.78%, Samsung Biologics by 0.83%, and KB Financial by 0.23%. Conversely, SK Square fell by 0.35%, Samsung C&T by 0.13%, and Samsung Life by 0.65%.
The KOSDAQ index is also on the rise. At the same time, the KOSDAQ was up 12.56 points (1.55%) at 824.44, having started at 815.06, up 3.18 points (0.39%).
In the KOSDAQ market, foreign investors have net purchased 69.8 billion won, leading the index's rise, while individuals and institutions have net sold 49.2 billion won and 19.1 billion won, respectively.
Notable gainers include EcoPro (1.36%), EcoPro BM (2.10%), JUSUNG Engineering (4.06%), Rainbow Robotics (1.73%), Wonik IPS (2.07%), EoTechnics (1.90%), Rino Industry (3.05%), Simtec (3.37%), and HPSP (4.97%). In contrast, Alteogen has dropped by 1.26%.
On September 8, U.S. markets fell for the second consecutive day amid escalating geopolitical uncertainties from the Middle East. The Dow Jones Industrial Average closed down 628.18 points (1.18%) at 52,786.07. The S&P 500 index fell by 45.08 points (0.58%) to finish at 7,673.52, while the Nasdaq composite dropped 85.58 points (0.32%) to close at 26,421.41.
Investor sentiment has been dampened following missile exchanges between the U.S. and Iran, clashes between Saudi Arabia and Iran-aligned Houthi rebels, and reports of U.S. strikes on Iranian oil tankers.
International oil prices have also risen for six consecutive days, adding pressure to domestic markets. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery closed at $93.03 per barrel, up $1.55 (1.69%). Brent crude for November delivery on the London ICE Futures Exchange rose by $0.92 (0.95%) to $97.92 per barrel. Oil prices have increased by over 8% this month.
However, the relative strength of the semiconductor sector is supporting the domestic market. In the U.S. market, while Nvidia fell by 2.01%, and Microsoft and Apple dropped by 1.15% and 1.17%, respectively, Intel surged by over 9% on news of CPU price increases and AI expectations.
Analysts believe that while volatility due to geopolitical instability in the Middle East and rising oil prices is inevitable, the existing recovery trend of the KOSPI is unlikely to be disrupted. With semiconductor and AI stocks regaining leadership and KOSPI earnings estimates remaining stable, the resistance around the 7000 level is seen as a process of absorbing selling pressure rather than a trend reversal.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The U.S. market has recorded declines for two consecutive days due to heightened uncertainties from the Middle East, including attacks on Saudi energy facilities and Iranian oil tankers near the Hargh Island. However, the recovery of semiconductor stocks domestically and internationally, driven by Nvidia and Broadcom's performance and the anticipated launch of OpenAI's GPT-6, is a positive sign."
She added, "The geopolitical tensions from the Middle East have pushed WTI prices into the mid-$90 range, and the U.S. 10-year Treasury yield is also under upward pressure, creating a loop of rising oil prices leading to inflation concerns, which in turn heightens caution regarding the August Consumer Price Index (CPI) and raises fears of a rate hike at the September FOMC meeting. However, compared to past military conflicts between the U.S. and Iran and when the 10-year Treasury yield reached around 4.8%, the pressure for market correction is limited, indicating an increasing resilience of the market to macro and geopolitical variables."
She further noted, "Today, the domestic market is likely to show a cautious stance due to the 1% rise in the Philadelphia Semiconductor Index, alongside renewed U.S.-Iran tensions and heightened caution regarding the August CPI. Although there have been several failed attempts to breach the 7000 level recently, this index level has become a psychological resistance. It is essential to approach the timing of entering this level rather than the level itself."
She concluded, "Foreign investors, who have turned to net buying in September, are absorbing a significant portion of the large sell-offs from individuals, along with institutions and other corporations, thereby defending the lower end of the index. Currently, the area around the 7000 level is more of a phase of transitioning ownership of individual sell-offs to foreign and other corporate buybacks rather than the upper limit of this recovery trend."
* This article has been translated by AI.
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