The Korean stock market, which had suffered repeated sharp declines, is attempting a rebound in pre-market trading, buoyed by semiconductor strength in the overnight U.S. market and bargain-hunting inflows. Fears stemming from U.S. President Donald Trump's second strike on Iran briefly weighed on the market early in the session, but investor sentiment is recovering after conciliatory remarks denying the possibility of all-out war.
According to Nextrade, the pre-market opened 1.89% higher from the previous session at 8 a.m. on the 9th. The gains have since widened to more than 2%. Samsung Electronics (005930.KS), which plunged the previous day, is trading up 3.06% at 286,000 won, while SK hynix (000660.KS) has surged 4.87% to 2,177,000 won. Buying warmth is also being detected across other large-cap stocks at the top of the market capitalization rankings, including SK Square (up 3.46%) and LG Energy Solution (up 2.06%).
Analysts interpret the mixed close in the U.S. market—which had been feared to plunge on the military clash between Iran and the United States—as influencing the KOSPI's rebound attempt. In overnight trading in New York, the Dow Jones Industrial Average fell 1.09%, but the Nasdaq Composite rose 0.20% to close at 25,870.65, lifted by positive news for large technology stocks. The rebound in semiconductor stocks amid the mixed session is a positive factor for the Korean market. Nvidia rose 3.7%, Broadcom surged 4.8%, and the Philadelphia Semiconductor Index rebounded 2.2%.
West Texas Intermediate (WTI) crude surged 4.37% to $73.52 per barrel on geopolitical unrest, though its intraday gains were capped by Trump's conciliatory remarks. "As U.S. President Donald Trump has denied the possibility of all-out war with Iran and signaled a limited use of military force, the market's geopolitical anxiety over Middle East risks will gradually come under control," predicted Lee Kyoung-min, an analyst at Daishin Securities.
On the previous day, the 8th, the KOSPI closed at 7,246.79, plunging 409.52 points (5.35%) from the prior trading session. Market capitalization shrank to 5,931 trillion won, falling below the 6,000 trillion won mark. It was the first time in seven weeks that market capitalization broke below 6,000 trillion won on a closing basis. The KOSDAQ also slid 5.56% to 785.00, and sell-side sidecars—temporary halts on program trading—were triggered in both markets. On a positive note, however, foreign investors halted their selling for the first time in 13 trading sessions, net buying 331.5 billion won.
Experts analyze that the current decline is excessive relative to fundamentals. The KOSPI's 12-month forward price-to-earnings ratio (PER) stands at around 6.2x, entering bottom territory below the 2008 financial crisis low of 6.43x. "As this plunge came without signs of a major real-economy crisis, unlike in the past, the expected value of further declines is low," said Han Ji-young, an analyst at Kiwoom Securities. "With the KOSPI currently in the low-7,000-point range, a staggered buying approach centered on oversold sectors such as semiconductors is appropriate."
