Kospi Opens Higher on US Tech Rally, Turns Mixed as Foreign Investors Extend Selling

The Kospi opened higher on June 30, buoyed by overnight gains in US technology shares, before turning mixed.

As of 9:35 a.m., the benchmark index was at 8,336.19, down 0.70% from the previous session. It opened 0.26% higher at 8,416.70, widened its gains and rose as high as 8,513.94.

Individuals and institutions were net buyers of 280.9 billion won and 454.3 billion won, respectively, helping support the index. Foreign investors, however, were net sellers of 759.2 billion won, extending their selling streak to eight straight trading sessions from June 19 through June 30.

Foreign investors recorded net sales of about 7.7 trillion won on June 29, the largest on record, and remained net sellers on June 30. They were also net sellers of 11.2 billion won in the Kospi 200 futures market.

US stocks climbed overnight as technology shares rebounded after recent weakness driven by valuation concerns. The Dow Jones Industrial Average rose 0.59%, breaking above 52,000 for the first time. The S&P 500 and Nasdaq Composite advanced 1.18% and 2.07%, respectively.

South Korean equities were also getting a lift, led by semiconductor stocks. Still, persistent foreign selling capped gains. Han Ji-young, an analyst at Kiwoom Securities, said the domestic market was set to open higher, supported by a sharp intraday rebound in US semiconductor shares.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com