SEOUL, October 06 (AJP) - An all-time closing high on the Nasdaq failed to lift South Korea's benchmark Korea Composite Stock Price Index (KOSPI) as Seoul reopened after a long holiday weekend.
Foreign investors sold, and SK hynix tracked weak US memory peers rather than Nvidia.
The KOSPI stood at 7,000.99 as of 9:27 a.m. after opening higher, down 2.75 points or less than 0.1 percent.
Wall Street's rally came alongside U.S. 10-year Treasury yields at their highest since 2002, and the money moved into small caps instead. The tech-heavy secondary KOSDAQ jumped 2.4 percent, while Japan's Nikkei 225 edged up 0.3 percent and mainland China's markets stay shut for the National Day holiday until Thursday.
Foreign investors net sold 298.8 billion won ($222.5 million) of KOSPI shares, while institutions bought 154.0 billion won ($114.7 million).
The flat headline masked broad gains underneath, with 479 KOSPI stocks advancing against 362 decliners.
SK hynix was the heaviest drag on the index as it fell 1.5 percent to 1,813,000 won ($1,350.0).
Overnight, Micron Technology lost 1.0 percent and SK hynix's American depositary receipts slipped, even as Nvidia closed at an all-time high.
Samsung Electronics rose 0.5 percent to 277,250 won ($206.4) ahead of its third-quarter preliminary earnings, due this week.
Samsung Electro-Mechanics was the standout large cap. The maker of multilayer ceramic capacitors and chip-package substrates climbed 5.1 percent to 1,662,000 won ($1,237.5).
In New York on Monday, the Nasdaq Composite rose 1.1 percent to an all-time closing high of 27,477.31 and the Standard & Poor's 500 (S&P 500) added 0.7 percent, as weak September US payrolls data cooled bets on a Federal Reserve rate hike this month.
The bond market told a different story. The 10-year Treasury yield touched 5.347 percent intraday, its highest since April 2002, as a services-sector price gauge hit its strongest reading since mid-2022.
The KOSDAQ stood at 914.30, up 21.01 points from Friday's close.
The won traded at 1,343.0 per dollar, weakening 0.5 won.
Korean markets were closed Monday for a substitute holiday for National Foundation Day and will close again Friday for Hangul Day, leaving just three sessions this week.
Those sessions carry two tests, the Fed's September meeting minutes due Wednesday and Samsung's earnings.
Kiwoom Securities expects the KOSPI to trade between 6,800 and 7,300 this week. With yields still climbing, the 7,000 line looks more like a floor under test than a level the market has reclaimed.
AJP Takeaways
- The KOSPI hovered near 7,000 in early trade after the holiday despite an all-time closing high on the Nasdaq, as foreign investors net sold 298.8 billion won ($222.5 million).
- SK hynix fell 1.5 percent while Samsung Electronics rose 0.5 percent ahead of its third-quarter preliminary earnings, and the KOSDAQ jumped 2.4 percent.
- With US 10-year Treasury yields at their highest since 2002, the Fed minutes and Samsung's earnings will test the 7,000 level over a three-session week.
Entity tags: KOSPI, KOSDAQ, SK hynix, Samsung Electronics, Samsung Electro-Mechanics, Nvidia, Micron Technology, Nasdaq Composite, S&P 500, Nikkei 225, Federal Reserve, US 10-year Treasury yield, Kiwoom Securities
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