KOSPI rebounded strongly on July 9 morning trading, rising 240.28 points (3.32%) to 7,487.07 after consecutive days of sharp decline driven by semiconductor peak concerns and geopolitical tensions. The index reached an intraday high of 7,532.71 as buying emerged after the previous day's 5%+ plunge pushed the 12-month forward price-earnings ratio to around 6.2x, a level below the 2008 financial crisis low that investors viewed as oversold. Overnight gains in US semiconductor stocks, including a 2.2% rise in the Philadelphia Semiconductor Index and a 0.20% advance in the Nasdaq, supported recovery in domestic investor sentiment.
Samsung Electronics and SK Hynix Lead Semiconductor Stock Rally
Large-cap semiconductor stocks drove the July 9 gains. Samsung Electronics traded at 289,500 won, up 4.32% from the previous session, while SK Hynix surged 8.43% to 2,251,000 won. Strong buying flowed across the broader semiconductor ecosystem, with SK Square rising 7.01% and Hanmi Semiconductor gaining 7.18%. KOSDAQ recorded 787.26, up 2.26 points (0.29%) from the previous trading day.
US Semiconductor Gains Support Korean Market Recovery
The Nasdaq Composite rose 0.20% in overnight trading, while the Philadelphia Semiconductor Index climbed 2.2%, providing positive momentum for Korean stocks. Broadcom jumped 4.8% on news of expanded contracts with Apple, and Nvidia gained 3.7%, alleviating concerns about a semiconductor peak. The US market performance helped restore confidence among domestic investors following the previous session's steep losses.
Trump Comments Ease Middle East Geopolitical Concerns
Geopolitical risk from the Middle East, which had intensified due to physical confrontation between the US and Iran, eased somewhat. US President Donald Trump stated at a press conference that he does not think war with Iran will restart, calming market anxiety. The reduction in geopolitical uncertainty contributed to the rebound in Korean equities.
Kiwoom Securities Analyst Sees Bottom Formation
Han Ji-young, a researcher at Kiwoom Securities, assessed that "the recent series of sharp declines was excessively severe, occurring without visible deterioration in fundamentals." Han stated that "the stock market's tolerance for geopolitical uncertainty has not been significantly damaged, so the expected value of further declines is low." Han added that "KOSPI has likely entered the bottom range after going through the sharp decline" and suggested that "a split buying approach focused on existing core sectors such as semiconductors and power equipment, which saw large declines, is appropriate at the current level."
FAQ
What caused KOSPI to rebound on July 9?
KOSPI rose 240.28 points (3.32%) to 7,487.07 on July 9 morning trading after the previous day's 5%+ decline pushed the 12-month forward PER to around 6.2x, a level investors viewed as oversold below the 2008 financial crisis low. Overnight gains in US semiconductor stocks, including a 2.2% rise in the Philadelphia Semiconductor Index, also supported the recovery.
How did Samsung Electronics and SK Hynix perform on July 9?
Samsung Electronics traded at 289,500 won, up 4.32% from the previous session, while SK Hynix surged 8.43% to 2,251,000 won on July 9. Strong buying flowed across the broader semiconductor ecosystem, with SK Square rising 7.01% and Hanmi Semiconductor gaining 7.18%.
