Nvidia surges, semiconductor stocks leap… Asian markets 'pillar of fire'

Korea Economic Daily

Summary

It reports that following Nvidia's positive earnings guidance, Asian markets and domestic semiconductor stocks rose in unison.
It stated that buying by foreigners and institutional investors propelled the semiconductor sector, with major stocks such as Samsung Electronics and SK Hynix showing strength.
Some experts said that market gains could be limited until year-end due in part to the U.S. central bank's policy rate freeze.

Recapture of the 4,000-point KOSPI, return to '100,000-won stock'

Taiwan 3.2% Japan 2.6% rebound

"AI bull market" vs "gains will be limited"

The leading AI stock Nvidia released optimistic earnings guidance (its own forecast), and Asian markets, which had been weighed down by 'AI bubble' concerns, rebounded in unison.

On the 20th, the KOSPI closed at 4,004.85, up 1.92%. It recaptured the 4,000 level after three days. The KOSDAQ closed at 891.94, up 2.37%. Taiwan's Taiex (3.18%) and Japan's Nikkei 225 (2.6%) also rose sharply.

On the Korea Exchange, institutional investors net-bought 757.4 billion won and foreigners net-bought 645.6 billion won, lifting the index. Individual investors sold off 1.3982 trillion won worth to realize gains.

Buying poured into the semiconductor sector. Samsung Electronics closed at 100,600 won, up 4.25%. It was the first time the closing price exceeded 100,000 won in three days since the 17th. That day foreigners bought 532.0 billion won worth of Samsung Electronics. SK Hynix also closed at 571,000 won, up 1.60%. HPSP (3.79%), Hanmi Semiconductor (2.32%), ISU Petasys (4.47%) also rose in succession.

As AI bubble concerns subsided, optimism spread that the market could receive another strong boost toward year-end. Kim Nam-ho, head of ETF management at Timefolio Asset Management, said, "Nvidia's earnings guidance is so good it's shocking," and added, "Through early next year, the U.S. and Korean markets will continue to be strong centered on AI stocks." Kim Dong-won, head of KB Securities' Research Center, also said, "By clearly presenting next year's earnings outlook, Nvidia has to some extent quelled AI bubble concerns," and "From next month, a rally led by semiconductor stocks will restart."

However, there are counterarguments that the rise may not be as large as expected until year-end. The U.S. Federal Reserve (Fed) is increasingly likely to keep its policy rate unchanged next month. If liquidity supply diminishes, market volatility could increase.

Jung Sang-jin, head of equity management at Korea Investment Trust Management, advised, "Until year-end the index may move sideways and upward momentum could weaken," and said, "It's time to pay attention to beneficiaries of government market stimulus measures, such as financial stocks."

Reporters: Seong-mi Shim / Jin-gyu Maeng / Ah-ra Jo smshim@hankyung.com