The KOSPI index has recovered to the 5730 level, buoyed by rebounds in major semiconductor stocks such as Samsung Electronics and SK Hynix. Following a rise in the U.S. stock market, concerns over credit risks for AI-related companies have eased, leading to a wave of bargain buying after a sharp decline the previous day.
As of 11:50 a.m. on October 16, the KOSPI was up 175.82 points (3.17%) at 5730.04. At the same time, the KOSDAQ index rose 32.33 points (4.25%) to trade at 793.15.
In the securities market, institutions have made a net purchase of 59.4 billion won, while foreign and individual investors have sold off 287.1 billion won and 120.6 billion won, respectively. In the KOSDAQ market, institutions and individuals have net bought 81.9 billion won and 24 billion won, while foreigners have net sold 113.3 billion won.
Most of the top stocks by market capitalization on the KOSPI are on the rise. Samsung Electronics is trading at 216,000 won, up 2.86%, while SK Hynix has increased by 2.22% to 1,290,000 won.
Other gainers include Samsung Electronics preferred shares (up 4.84%), SK Square (up 3.27%), Samsung Electro-Mechanics (up 2.58%), Hyundai Motor (up 6.77%), Samsung Biologics (up 5.13%), and Samsung Life Insurance (up 5.92%). Conversely, KB Financial is down 3.89%.
On the KOSDAQ market, Alteogen has surged 10.07% to 235,000 won. Other stocks showing gains include EcoPro (up 1.86%), EcoPro BM (up 1.61%), JUSUNG Engineering (up 2.44%), HLB (up 1.96%), IO Tech (up 4.85%), Rino Industry (up 4.32%), and Wonik IPS (up 3.51%).
The rebound in the domestic stock market is attributed to improved investor sentiment in the U.S. markets overnight. On October 15, the Dow Jones Industrial Average rose by 1.08%, the S&P 500 increased by 0.33%, and the Nasdaq Composite gained 0.08%.
Notably, Jensen Huang, CEO of NVIDIA, positively assessed the financial health of AI infrastructure company CoreWeave, alleviating some concerns over credit risks for related firms. Huang stated that CoreWeave's financial competitiveness is continuously improving, and its capital procurement costs are decreasing.
Additionally, Taiwan's TSMC reported strong earnings, supporting expectations for the semiconductor industry. TSMC's third-quarter revenue increased by 41.2% year-on-year to $46.72 billion, with net profit rising by 68.7%. The demand for advanced processes remains robust, sustaining growth expectations in the AI semiconductor market.
However, inflationary pressures in the U.S. continue to pose challenges. The Producer Price Index (PPI) for September rose by 1.3% month-on-month, exceeding market expectations of 0.6%. The core PPI also increased by 0.7%, surpassing the forecast of 0.3%.
Despite this, Mary Daly, President of the Federal Reserve Bank of San Francisco, acknowledged the possibility of further rate hikes but assessed that immediate action is not necessary, easing some market tightening concerns.
Lee Kyung-min, a researcher at Daishin Securities, explained, "Jensen Huang's positive evaluation of CoreWeave's financial health has acted as a factor in alleviating credit risk concerns for AI-related companies." He added, "Although the U.S. PPI exceeded expectations, cautious comments from Fed officials and declining Treasury yields have influenced investor sentiment, while TSMC's strong performance also supports expectations for the semiconductor industry."
* This article has been translated by AI.
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