As U.S. Treasury yields stabilize, the New York stock market closed slightly higher, while South Korea's market is expected to show a period of consolidation on October 2. Optimism surrounding improvements in the semiconductor sector is likely to support the lower end of the index, but the upcoming U.S. employment report for September and cautious sentiment ahead of the domestic holiday may limit upward momentum.
On October 1, the Dow Jones Industrial Average finished up 0.04% at 50,926.56. The S&P 500 rose 0.19% to close at 7,666.45, while the Nasdaq Composite gained 0.04% to end at 26,871.60.
The New York market was initially shaken by a surge in U.S. Treasury yields. The yield on the 10-year Treasury note soared to 5.342% during the day, marking its highest level since April 2002.
The increase in the manufacturing Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) for September indicated a significant rise in cost pressures for manufacturers, raising concerns about inflation and the possibility of further tightening by the Federal Reserve.
However, as bargain hunters entered the Treasury market and Federal Reserve Vice Chair Philip Jefferson stated that policy adjustments require time, the rise in yields began to stabilize. Consequently, the New York stock market recovered from its earlier losses and closed in positive territory.
Strength in semiconductor stocks also supported investor sentiment. Micron Technology rose 3.0%, Nvidia increased by 1.1%, and the Philadelphia Semiconductor Index climbed 1.59%. Accenture surged 15.8% on strong earnings.
In the South Korean market, expectations for improvements in the semiconductor sector continue. As of 8:20 a.m. in pre-market trading, SK Hynix was up 0.55% at 1,843,000 won, and SK Square rose 0.26%. Samsung Electronics remained flat at 276,000 won.
Conversely, Samsung Electro-Mechanics fell 0.26%, LG Energy Solution dropped 0.28%, and Hyundai Motor and Samsung Biologics each declined by 0.14%, indicating mixed performance among large-cap stocks. KB Financial, however, rose by 0.96%.
Analysts suggest that while the domestic market may be supported by the stabilization of U.S. Treasury yields and expectations for improved semiconductor earnings, the upcoming U.S. employment report and cautious sentiment ahead of the holiday will likely limit the extent of any gains. The U.S. employment report for September, set to be released later that night, is seen as a key variable that could influence short-term market direction, with expectations for new jobs to slow to 100,000 from 162,000 in August.
Han Ji-young, a researcher at Kiwoom Securities, noted, "The recent rise in the 10-year yield is influenced by a combination of increased supply of government and corporate bonds, term premiums, and technical selling in the bond market. However, if the September employment figures align with market expectations, the pressure from interest rates on the stock market may ease compared to the past week or two."
Expectations for corporate earnings in South Korea are supporting the lower end of the market. Micron has reported securing over 75% of its shipments for 2027, and discussions with clients regarding supply allocations are shifting to 2028 volumes.
The September ISM manufacturing PMI also included DRAM as a supply-constrained item for the first time this year, raising expectations for the semiconductor sector. South Korea's exports in September increased by 83.5% year-on-year, surpassing market forecasts, with the growth rate for semiconductor exports expanding from 209.0% in August to 262.8% in September.
However, rising international oil prices and a strong dollar pose challenges. International oil prices surged by over 3% due to supply concerns following attacks on Russian oil facilities and China's suspension of fuel product exports.
Seo Sang-young, a researcher at Mirae Asset Securities, stated, "The MSCI Korea ETF rose by 1.82%, and the Philadelphia Semiconductor Index increased by 1.59%, but rising international oil prices and a strong dollar remain burdensome factors."
He added, "The KOSPI futures market saw a decline of nearly 2% during the day, but ultimately closed in a stable range as U.S. Treasury yields found stability."
* This article has been translated by AI.
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