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The Kospi recovered the 7,700 level during intraday trading on the 8th, a day after it plunged nearly 5%, triggering a circuit breaker. Although it slid to the 7,300 level early in the session amid a sharp drop in U.S. semiconductor stocks and geopolitical instability in the Middle East, bargain-hunting inflows helped it turn higher.
According to the Korea Exchange, as of 10:03 a.m. that day, the Kospi stood at 7,782.44, up 126.13 points (1.65%) from the previous trading day.
The Kospi opened at 7,452.48, down 2.66% from the prior session, reeling from the plunge in U.S. semiconductor stocks and Middle East geopolitical risk. Right after the open, it widened its losses to the 7,350 level around 9:03 a.m., but subsequently recouped the decline quickly as bargain-hunting inflows entered, turning to gains.
Among top market-cap stocks, SK hynix led the rebound, trading at 2.304 million won, up 4.68% from the previous session. Hyundai Motor (0.42%), SK Square (0.22%), and Samsung Electronics preferred shares (0.60%) also advanced.
By contrast, Samsung Electronics traded flat at 296,000 won. LG Energy Solution (-2.11%), Samsung Life Insurance (-3.07%), Samsung C&T (-1.88%), Samsung Biologics (-1.20%), and Samsung Electro-Mechanics (-0.73%) posted weakness.
Overnight, the New York stock market weakened, led by semiconductor stocks. The Dow Jones Industrial Average fell 0.25%, the Standard & Poor's (S&P) 500 dropped 0.45%, and the Nasdaq index declined 1.16%. Intel (-9.66%), AMD (-6.51%), and Micron (-4.71%) fell sharply, while the Philadelphia Semiconductor Index also lost 4.65%.
Tensions between the U.S. and Iran flared up again, dampening risk appetite. Following a vessel attack in the Strait of Hormuz, news that the U.S. had launched a military response against Iran sent international oil prices surging, weighing on global equity markets broadly.
Han Ji-young, a researcher at Kiwoom Securities, said, "External burdens such as U.S. market weakness and uncertainty over the Strait of Hormuz raised volatility from early in the session," but added, "The prior pricing-in of the U.S. semiconductor plunge and bargain-hunting inflows following a series of sharp declines since July are lending the index resilience, and it will attempt an intraday rebound."
