Kospi Reclaims 6,400 as Foreign Buying Boosts Samsung Electronics, SK Hynix

South Korea’s Kospi rebounded early on August 7, reclaiming the 6,400 level a day after a sharp selloff. Foreign buying lifted semiconductor shares including Samsung Electronics and SK Hynix.

The Kospi opened at 6,365.07, up 1.09% from the previous session, according to the Korea Exchange. By 9:08 a.m., it had extended gains to 1.83% at 6,411.69.

Foreign investors were net buyers of 265.5 billion won, driving the advance. Individuals were net sellers of 237.4 billion won, while institutions sold a net 6.7 billion won.

Most large-cap stocks traded higher. Samsung Electronics rose 3.15% and SK Hynix gained 2.54%. SK Square climbed 3.51%, Samsung Electro-Mechanics added 3.17%, and LG Energy Solution advanced 2.17%.

The Kosdaq also rebounded. The index opened at 807.62, up 0.74% from the previous session, and was up 1.35% at 812.46 as of the same time.

On the Kosdaq, individuals were net buyers of 4.7 billion won and institutions bought a net 6.2 billion won. Foreign investors were net sellers of 10.4 billion won. Ecopro rose 5.62% and Ecopro BM gained 4.78%, while Rainbow Robotics fell 1.94%.

US stocks fell across the board overnight as uncertainty surrounding the Strait of Hormuz and concerns over interest-rate increases weighed on sentiment. In South Korea, however, bargain hunting after the previous day’s steep drop and renewed foreign inflows were supporting the rebound.

Han Ji-young, an analyst at Kiwoom Securities, said that despite lingering caution, weakness in US semiconductor stocks had already been priced in. Bargain buying after the previous day’s sharp decline should help support a rebound attempt, he added.