The KOSPI surged more than 6% on the back of positive developments from the US and strong performance in the semiconductor sector, recovering above the 7,000 mark for the first time in three trading days.

A buy-side circuit breaker was triggered as strong buying orders from foreign investors and institutions poured in from early in the session, with major semiconductor stocks including Samsung Electronics and SK Hynix leading the index higher.

▲ KOSPI Reclaims 7,000 Milestone on US Tailwinds

As of 9:25 AM on the 15th, the KOSPI stood at 7,325.49, up 468.66 points (6.83%) from the previous trading day.

The index opened at 7,082.91, up 226.08 points (3.30%), and quickly expanded its gains, reflecting strong investor sentiment from the start of the session. With bargain-hunting demand flowing in due to recent sharp declines, the market showed a strong rebound trend in a short period.

▲ Buy-Side Circuit Breaker Triggered…36th Time This Year

As the surge continued, a buy-side circuit breaker was triggered at 9:06 AM, suspending the effectiveness of program buy orders. This marks the 36th activation this year.

The KOSPI circuit breaker is triggered when the KOSPI 200 futures price rises 5% or more from the reference price for one minute or longer, suspending the effectiveness of program buy orders for five minutes. This is a market stabilization mechanism to mitigate excessive price volatility.

▲ Foreign Investors and Institutions Drive Buying…Individuals Take Profits

In terms of supply and demand, foreign investors and institutions led the market's rise.

Foreign investors net purchased 515.5 billion won while institutions net purchased 174 billion won, whereas individuals net sold 685 billion won, taking profits.

In the KOSPI 200 futures market, institutions net sold 680 billion won, while foreign investors and individuals net purchased 110 billion won and 479 billion won respectively, showing a somewhat different trend from the spot market.

▲ Moderation in US Inflation Eases Rate Hike Concerns

Behind the domestic stock market's surge was the moderation of US inflation and easing concerns about base rate hikes.

The US Consumer Price Index (CPI) for June rose 3.5% year-over-year, easing from 4.2% in May. Additionally, Federal Reserve Chair Kevin Walsh did not deliver the hawkish remarks the market had worried about in his first appearance before Congress, improving investor sentiment.

Against this backdrop, US stock markets saw the Dow Jones 30 Industrial Average rise 0.02%, while the S&P 500 and Nasdaq indices gained 0.38% and 0.90% respectively, continuing their strength in technology stocks.

KOSPI Opens at 7,000 Level with SK Hynix Recovering to 2 Million Won(Photo : [Yonhapnews Provided])

▲ Global Semiconductor Rally…Samsung Electronics and SK Hynix Soar

The across-the-board rise in the semiconductor sector in US markets also had a positive impact on the domestic market.

SK Hynix American Depositary Receipts (ADR) surged 27.29%, recording the highest price since its listing on the 10th. NVIDIA rose 4.06%, Micron 4.92%, SanDisk 5.01%, and Intel 4.50%, boosting global semiconductor investment sentiment.

Simon Coles, an analyst at Barclays, forecasts continued memory supply shortages and has set a target price of $330 for SK Hynix ADR.

In the domestic market, Samsung Electronics surged more than 6%, while SK Hynix jumped over 11%. SK Hynix, which had recently fallen below 2 million won, recovered to the 2.1 million won range, reflecting improved investment sentiment.

▲ Middle East Variable Maintained…Risk Asset Preference Continues

Geopolitical tensions in the Middle East persist, but the market showed signs of absorbing them to some extent.

As the US mobilized 20 battleships and hundreds of military aircraft to blockade Iran's maritime routes, international oil prices rose in the mid-1% range, but investors appeared to place more weight on global liquidity and the possibility of semiconductor industry improvements.

▲ Electrical and Electronics Sector Leads…Large-Cap Stocks Rise Across the Board

By industry, electrical and electronics led with a 7.49% gain.

Manufacturing followed with a 6.16% increase, machinery and equipment with 5.79%, and securities with 5.59%, with most sectors showing strength.

Top market capitalization stocks also rose uniformly. SK Square recorded a gain exceeding 10%, while Samsung Electro-Mechanics gained in the 8% range, with semiconductor and IT-related stocks leading the market.

In the market, gaining stocks numbered 932, while declining stocks were only 223, showing an overall improvement in investment sentiment.

▲ KOSDAQ Recovers 800 Line…HLB Hits Upper Limit

The KOSDAQ also continued its strong rebound trend.

The index opened at 805.71, up 21.73 points (2.77%), and as of 9:25 AM reached 820.20, up 36.22 points (4.62%), recovering above the 800 line again. Following the surge, a buy-side circuit breaker was also triggered in the KOSDAQ market.

In terms of supply and demand, foreign investors net purchased 15.8 billion won, while individuals and institutions each net sold approximately 6-7 billion won.

Alteogen, the market's largest stock by capitalization, rose 5% as it recovered from the previous day's decline, while EcoPro BM and EcoPro surged 9-11%. HLB hit the upper limit following news that key supplementary reasons for US approval of a hepatocellular carcinoma new drug were resolved.

By sector, financing showed the highest gain at 8.17%, followed by mid-cap companies at 6.73%, technology growth companies at 6.57%, and pharmaceuticals at 6.11%, leading the overall strength of KOSDAQ.

This surge is analyzed as a result of US inflation moderation, expectations for semiconductor industry improvements, and bargain-hunting demand from recent declines all acting simultaneously.

However, with external variables such as Middle East developments and the direction of US monetary policy still remaining, market attention is focused on whether this rebound can continue as a trend-driven rise.