Recent buying interest in undervalued semiconductor stocks, coupled with easing military tensions in the Middle East, is expected to drive the KOSPI higher on November 10. In pre-market trading, major semiconductor stocks like Samsung Electronics and SK Hynix showed strength, raising questions about whether the positive momentum from the U.S. market will translate into gains for the domestic market.
On November 9, the Dow Jones Industrial Average rose 2.15% on the New York Stock Exchange. The S&P 500 and Nasdaq Composite also increased by 2.35% and 2.74%, respectively, marking a broad rally among the three major indices.
The recent downturn in semiconductor stocks has attracted bargain hunters, leading to a rebound in tech stocks. AMD surged by 13.26%, while Broadcom and Marvell Technology rose by 8.78% and 9.49%, respectively. Micron Technology and SK Hynix's ADRs also saw gains of 6.25% and 5.53%. The Philadelphia Semiconductor Index, which had dropped over 12% in the previous trading session, rebounded by 6.86% on this day.
However, NVIDIA experienced a decline of 4.27%, diverging from the trend of other major semiconductor stocks. This drop is attributed to concerns surrounding CEO Jensen Huang's personal controversies, which have weighed on investor sentiment. Nevertheless, the overall market showed a tendency to differentiate between individual setbacks and the broader investment cycle in the AI sector.
A decline in international oil prices also supported a preference for riskier assets. West Texas Intermediate (WTI) crude futures fell by 4.38% to close at $86.85 per barrel, while Brent crude futures dropped 5.85% to $92.57 per barrel. President Donald Trump indicated that the likelihood of significant additional airstrikes against Iran is very low, contributing to expectations of reduced military tensions in the Middle East.
The positive momentum from the U.S. market was reflected in pre-opening indicators for the Korean stock market. The MSCI Korea ETF and MSCI Emerging Markets ETF rose by 3.72% and 2.87%, respectively. KOSPI 200 night futures surged by 5.78%.
In pre-opening trading, major semiconductor stocks showed notable strength. As of 8:28 a.m., Samsung Electronics traded at 200,500 won, up 10,600 won (5.58%) from the previous session. SK Hynix also rose by 1,500 won (1.50%) to 213,000 won. Other stocks, including SK Square (up 7.48%), LG Energy Solution (up 2.83%), and Samsung Electro-Mechanics (up 7.47%), also showed upward trends.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite the market's cautious sentiment ahead of the U.S. October CPI and core earnings reports, the strong rebound of over 6% in the Philadelphia Semiconductor Index and the more than 5% surge in KOSPI 200 night futures are expected to support a rally in the domestic market."
* This article has been translated by AI.
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