The KOSPI reclaimed the 8,200 mark at the open Friday, buoyed by hopes of easing geopolitical risk in the Middle East. Buying flooded into chip stocks, triggering a buy-side sidecar just six minutes into the session.
The KOSPI opened at 8,263.85, up 499.90 points, or 6.44%, from the previous trading day, according to the Korea Exchange Friday. The KOSDAQ index also started higher at 1,027.05, up 30.12 points, or 3.02%.
As of 9:03 a.m., Samsung Electronics traded at 325,750 won, up 26,750 won (8.95%), while SK hynix traded at 2,288,000 won, up 187,000 won (8.90%). Other top market-cap stocks also rose across the board, including SK Square (9.69%), Samsung Electro-Mechanics (9.09%), Samsung Life Insurance (7.95%), Samsung C&T (7.44%) and Hyundai Motor (6.70%).
On the KOSDAQ, Chosun Engineering surged 13.44%, while Wonik IPS (12.84%), Samchundang Pharm (7.60%), Ecopro (4.69%) and Ecopro BM (3.83%) rose, as buying spread across the semiconductor, secondary battery and biotech sectors.
As buying rushed in, the KOSPI 200 futures price held more than 5% above the previous day's close for over one minute at 9:06:02 a.m., triggering a buy-side sidecar. A sidecar is a market stabilization mechanism that suspends the effect of program trading orders for five minutes.
Behind the improved investor sentiment were hopes of easing tensions in the Middle East. U.S. President Donald Trump said at the White House Thursday, "We just made a great deal on the war with Iran," adding that "only the final coordination of the documents remains." He continued, "A signing ceremony could perhaps be held in Europe this weekend." However, Iran's Ministry of Foreign Affairs said it had not yet made a final decision, leaving the actual signing of a memorandum of understanding (MOU) requiring further confirmation.
U.S. markets also rebounded across the board overnight. The Dow Jones Industrial Average rose 1.9%, the Standard & Poor's (S&P) 500 gained 1.8%, and the Nasdaq climbed 2.5% to close higher. In particular, chip stocks led the gains, with Micron surging 11.7%, Intel up 9.3% and Nvidia up 2.2%, lifting investor sentiment.
Analysts said the U.S. Producer Price Index (PPI) for May, which came in within market expectations and somewhat eased inflation concerns, also worked favorably for the market. Han Ji-young, an analyst at Kiwoom Securities, said, "As the market's resilience has strengthened through the recent correction, investors need to maintain a view of 'staggered buying on dips' rather than 'selling and raising cash positions.'"
