US Treasury Yield Surges, Mixed Close... KOSPI Successfully Rebounds in Late Trading

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market closed mixed on the 8th. The KOSPI, which rose slightly in early trading, turned downward in the afternoon due to foreign selling amid rising government bond yields, but managed to rebound just before the close and ended flat.

On the day, the KOSPI index closed at 2246.47, up 1.41 points (0.05%) from the previous day. The index, which started with a slight gain, recovered to just below 2780 in early trading but gave up its gains during the session and eventually turned downward in the afternoon. However, it reversed to an upward trend before the close due to increased buying by individuals. Foreigners net sold about 94.2 billion KRW. Individuals and institutions net bought approximately 46.1 billion KRW and 39.1 billion KRW, respectively.

The index's reversal to a decline is attributed to the rise in U.S. government bond yields and the downturn in the Chinese market. Park Seok-hwan, a researcher at Mirae Asset Securities, said, "The domestic stock market, which maintained gains in the morning, turned downward during the session due to the decline in the Chinese stock market and the sharp rise in U.S. government bond yields," adding, "The increase in bond yields expanded the losses in tech stocks." He also noted that the supply-demand imbalance seen in LG Energy Solution the previous day has eased.

However, there is also an assessment that the cautious sentiment ahead of LG Energy Solution's inclusion in the MSCI index on the 14th fueled the decline on this day.

Lee Kyung-min, a researcher at Daishin Securities, said, "It seems to be a partly cautious sentiment ahead of LG Energy Solution's MSCI inclusion on the 14th," adding, "Although the won-dollar exchange rate decline was favorable during the session, the KOSPI surpassing the 2750 level has created a cautious atmosphere rather than a clear direction."

Among the top market capitalization stocks in the KOSPI, only Samsung Biologics (4.85%) showed a significant rise. Expectations that it would benefit from the U.S. export restrictions on Chinese contract manufacturing organizations boosted its stock price. Samsung Electronics (0.68%) and SK Hynix (1.63%) also recorded gains. On the other hand, LG Chem (-3.44%) and Samsung SDI (-2.11%) continued to weaken, and NAVER (-1.53%) and Kakao (-1.70%) also declined.

The KOSDAQ index turned downward from the afternoon and closed at 895.27, down 4.13 points (0.46%). After recovering above 900 on the 4th, it fell below 900 for two consecutive days starting the previous day. Individuals defended the decline by net buying 147.6 billion KRW, but foreigners net sold about 127.7 billion KRW, and institutions also joined the selling with a net sale of 12.8 billion KRW, resulting in a failure to rebound.

Game stocks such as Wemade (5.87%), Pearl Abyss (5.87%), and Kakao Games (2.63%) maintained sharp gains and closed strong, while Celltrion Healthcare (2.23%) and Celltrion Pharm (1.86%) also showed strength. EcoPro BM, which surged sharply in early trading, reversed to a decline and fell 1.01%, while L&F rose 2.63%. Seegene and Cheonbo also fell by 3.33% each.

This content was produced with the assistance of AI translation services.