KOSPI Battles to Hold 7,000 as SK hynix Surges 4% [Morning Market Update]

[Financial News] The KOSPI rose more than 3% and recovered the 7,000 level. The strong earnings report from Alphabet, Google’s parent company, and gains in semiconductor stocks appear to have improved investor sentiment. According to the Korea Exchange, as of 10:50 a.m. on the 23rd, the KOSPI was trading at 6,987.50, up 2.84% from the previous session. The index opened at 6,963.35 and climbed as high as 7,085.15 during the session, but it is now fluctuating around the 7,000 mark.
By investor type, foreigners were net buyers of 942 billion won. Individuals and institutions were net sellers of 951.5 billion won and 33.5 billion won, respectively.
Most of the KOSPI's large-cap stocks were trading higher. Samsung Electronics rose 3.45% from the previous session to 269,500 won. SK hynix was up 4.04% at 1,904,000 won.
SK Square (1.22%), Samsung Electronics Co., Ltd. Preferred Shares (3.57%), Samsung Electro-Mechanics (7.43%), Hyundai Motor Company (2.39%), and LG Energy Solution (3.12%) were also higher.
The KOSDAQ also rose 2.44% from the previous day to 769.33. By investor type, institutions and foreigners were net buyers of 51.3 billion won and 14 billion won, respectively. Individuals were net sellers of 67.1 billion won.
Overnight, Wall Street remained cautious ahead of earnings releases from major companies such as Alphabet and Tesla. Rising international oil prices, driven by geopolitical risks from the Middle East, also dampened investor sentiment, sending all three major indexes lower.
On the 22nd local time, the DJIA fell 0.01% from the previous session to 52,218.58, the S&P 500 declined 0.14% to 7,498.96, and the NASDAQ Composite Index, which is centered on technology stocks, dropped 0.57% to 25,690.90.
The second-quarter results released after the New York stock market closed were also disappointing for Alphabet and Tesla. Alphabet reported quarterly earnings that beat market expectations, but its cash flow turned negative due to heavy investment in AI infrastructure.
Seo Sang-young, a researcher at Mirae Asset Securities, explained, "Alphabet's earnings themselves were solid, but after the conference call, the burden of AI investment became more apparent in after-hours trading." He added, "As free cash flow turned negative and the company said it would borrow to invest, it raised uncertainty about future earnings."
Tesla's earnings fell short of market expectations. Second-quarter revenue rose 26% from a year earlier to $28.2 billion, but adjusted earnings per share came in at 33 cents, below the market forecast of 51 cents. Net income also plunged 17% year on year to $1.2 billion. As investment in AI infrastructure and other areas increased, free cash flow posted a negative $1.09 billion.
Ongoing geopolitical tensions in the Middle East also hurt sentiment as international oil prices surged. September West Texas Intermediate crude oil (WTI) futures rose 2.95% from the previous session to $86.83 per barrel, while Brent Crude Oil futures closed up 3.36% at $94.07.
Market watchers say the KOSPI could see greater intraday volatility amid concerns over rising oil prices and interest rates. Han Ji-young, a researcher at Kiwoom Securities, said, "Domestic stocks are likely to remain volatile as upward and downward factors are mixed, including pressure from higher oil prices and interest rates as well as the impact of Alphabet's weaker after-hours share price and the after-hours gains in U.S. semiconductor stocks following their increased capital expenditures (CAPEX)."
[email protected] Han Young-joon Reporter