PiCK
Kospi Rebounds More Than 2% From Fed Rate Shock, Led by Chip Stocks
Summary
- The Kospi rebounded more than 2% in early trading as investors absorbed the shock of a U.S. benchmark rate increase, with foreign and institutional investors turning net buyers.
- Gains in technology stocks on Wall Street, a 3.14% rise in the Philadelphia Semiconductor Index, a drop in international oil prices, and a decline in the U.S. 10-year Treasury yield were helping revive investor sentiment.
- Semiconductor heavyweights including Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics remained strong, while the Kosdaq extended gains for a fourth straight session. Orum Therapeutics, by contrast, hit its daily lower limit.
Forecast Trend Report by Period
The Kospi rose more than 2% in early trading on September 18 as investors digested the shock of a U.S. interest-rate increase. Strength in New York technology shares overnight and a pullback in oil prices helped revive risk appetite.
As of 9:01 a.m., the Kospi was up 166.12 points, or 2.47%, at 6,881.53. On the main board, foreign investors were net buyers of 128 billion won and institutions bought a net 178 billion won. Retail investors sold 341 billion won worth of shares.
Major U.S. indexes closed higher overnight despite the impact of the Federal Reserve's rate increase. Technology stocks led the rebound, with the Philadelphia Semiconductor Index climbing 3.14%.
Lower oil prices and easing bond yields also supported sentiment. Brent crude and West Texas Intermediate both edged down, while the yield on the U.S. 10-year Treasury fell 9 basis points from the previous day to 4.93%.
Large-cap semiconductor shares led the advance. Samsung Electronics and SK Hynix rose 2.97% and 3.95%, respectively, while Samsung Electro-Mechanics jumped 5.26%.
The Kosdaq extended gains to a fourth straight session. At the same time, the Kosdaq index was up 0.97% at 830.09. Jusung Engineering rose 4.41% and Leeno Industrial gained 2.86%, while Wonik IPS and EO Technics added 1.69% and 1.41%, respectively.
Orum Therapeutics, by contrast, fell to the daily limit after news that its partner had halted development of a blood-cancer antibody-degrader conjugate candidate.
In Seoul's foreign-exchange market, the won was trading at 1,382.2 per dollar, unchanged from the previous day's 3:30 p.m. close.
YM Lee
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