No Impact from Nasdaq Plunge, KOSPI Surpasses 2280... Samsung Electronics Recovers to 60,000 Won

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Despite the Nasdaq plummeting overnight due to disappointing Q3 earnings from major U.S. big tech companies, the KOSPI, which started higher, extended its gains during the session and surpassed the 2280 level. The end of the U.S. stock market's rally has had little impact on domestic market investor sentiment. On the contrary, the easing concerns over Federal Reserve (Fed) tightening are being perceived as a positive factor, alleviating pressure. Supported by combined buying from foreigners and institutions, the KOSPI is showing gains of over 1.5%, while individual investors are offloading shares amid the rise.

As of 11:08 a.m. on the 27th, the KOSPI was up 1.53% at 1284.05. The KOSDAQ was trading 1.45% higher at 693.09. Foreigners and institutions are leading the index gains. Foreigners have purchased 147.8 billion KRW and institutions 344 billion KRW in the KOSPI market. In the KOSDAQ market, foreigners and institutions have net bought 28.1 billion KRW and 11.5 billion KRW, respectively. Conversely, individuals are net sellers, offloading 489.3 billion KRW and 42.6 billion KRW in the two markets, respectively.

Although disappointing earnings from U.S. big tech companies dragged down the three major U.S. stock indices, the impact on the domestic market appears limited.

On the 26th (local time), the Dow Jones Industrial Average closed at 31,839.11, up 2.37 points (0.01%) from the previous session. The Dow rose more than 300 points during the day but gave up most of the gains by the close, ending near flat. The Standard & Poor's (S&P) 500 index fell 28.51 points (0.74%) to 3,830.60, and the tech-heavy Nasdaq index plunged 228.12 points (2.04%) to 10,970.99.

The Q3 earnings issues of U.S. companies had already been priced into the stock prices, and recent indicators suggesting an economic slowdown, along with interventions by central banks worldwide that have eased the dollar's strength, contributed to this outcome.

Seosangyoung, a researcher at Mirae Asset Securities, noted, "Since much of this was already reflected yesterday, the impact seems limited."

The inversion phenomenon, where the 3-month U.S. Treasury yield is higher than the 10-year yield, has heightened recession concerns, which in turn has fueled expectations that the Fed will slow the pace of rate hikes, a positive development.

Researcher Seo emphasized, "With the weakening of the U.S. dollar expanding, the Korean won's strength may increase, which is expected to positively influence foreign investor demand." On this day, the won-dollar exchange rate fell 10.60 KRW from the previous trading day, staying around the 1410 KRW level, prompting intensified foreign buying.

Han Ji-young, a researcher at Kiwoom Securities, forecasted, "With mixed factors such as global dollar weakness and expectations of Fed's pace adjustment as upward factors, and caution over U.S. big tech earnings as downward factors, the market will likely show sectoral differentiation depending on individual issues."

Most of the top market capitalization stocks are rising. In particular, Samsung Electronics, the market leader, recovered to 60,000 KRW for the first time in two months following news of Vice Chairman Lee Jae-yong's promotion to Samsung Electronics chairman. Samsung C&T is also showing a nearly 5% rise after a Q3 earnings surprise.

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