The South Korean stock market is expected to rise, buoyed by a surge in U.S. semiconductor stocks. Major semiconductor companies in New York saw significant gains overnight, with Samsung Electronics and SK Hynix showing strength even before the regular trading session began.
As of 8:04 a.m. on July 22, Samsung Electronics was trading at 273,000 won, up 14,000 won (5.41%) from the previous trading day. At the same time, SK Hynix recorded a rise of 12,400 won (6.75%), reaching 1,960,000 won.
The New York stock market ended a three-day decline, driven by a rebound in semiconductor stocks and strong earnings from major companies. On July 21, the Dow Jones Industrial Average closed at 52,224.64, up 0.74%. The S&P 500 rose by 0.89% to 7,509.20, while the Nasdaq Composite gained 1.29%, finishing at 25,837.21.
Investors flocked to semiconductor stocks, which had recently seen significant declines. Micron surged by 12.0%, and SanDisk jumped by 14.2%. SK Hynix's American Depositary Receipts (ADRs) also rose by 13.75%. Strong earnings from major companies like General Motors and 3M contributed to a recovery in investor sentiment.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to rise despite concerns over rising oil prices due to uncertainties in the Middle East, supported by the surge in U.S. semiconductor stocks, a strong performance in KOSPI 200 futures, and expectations for the second-quarter earnings season in the automotive and banking sectors later this week."
However, volatility during trading hours may continue. One researcher noted, "The high level of VKOSPI and the surge in leveraged trading of individual stocks could increase volatility pressure today."
The market is also paying close attention to upcoming earnings reports from major tech companies like Alphabet. In particular, Alphabet's capital expenditure (CAPEX) plans and cloud growth are expected to be key indicators of ongoing demand for artificial intelligence (AI) investments and semiconductor needs, such as high-bandwidth memory (HBM) and server DRAM.
Geopolitical uncertainties from the Middle East and rising international oil prices remain concerns. However, the recent sharp decline in the stock market has increased valuation attractiveness, and improved foreign investor sentiment is seen as a positive factor.
One researcher advised, "A strategy of holding or gradually buying semiconductor stocks at least until next week is a better option. It is also important to reflect in strategies that foreign net buying in sectors like retail, automotive, construction, and software can contribute to improving returns."
* This article has been translated by AI.
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