Samsung Electronics and SK hynix rebound? KOSPI also recovers the 6,700 level [fn Afternoon Market]

[Financial News] KOSPI, which opened sharply lower, turned higher in the afternoon. Semiconductor stocks such as Samsung Electronics and SK hynix, which had fallen by around 4% in early trading, narrowed their losses as foreign buying came in, helping the index recover the 6,600 level. According to the Korea Exchange, KOSPI was up 0.03% from the previous session at 6,795.09 as of 2:15 p.m. on Aug. 31.
KOSPI had plunged more than 3% in early trading and slipped to the 6,500 level, but it later reversed course and moved higher in the afternoon. The index appears to be recovering as bargain buying flowed into domestic semiconductor stocks, which had faced heavy selling early in the session following a sharp drop in U.S. semiconductor shares.
Samsung Electronics fell by nearly 4% early in the session, but it is now flat compared with the previous day. SK hynix also dropped more than 4% at the open before turning slightly higher.
Weakness in New York stocks over the weekend also appears to be weighing on the domestic market. On Aug. 28 local time, at the Jackson Hole meeting, Fed Chair Powell expressed caution over inflation, sending short-term U.S. Treasury yields sharply higher and triggering selling in technology and semiconductor shares. The Philadelphia Semiconductor Index fell 3.47%.
Still, as semiconductor stocks trimmed their losses during the session, investor sentiment has eased somewhat. Key factors likely to shape the direction of domestic semiconductor shares include South Korea's August trade data, due on Sept. 1, and earnings from major U.S. semiconductor companies.
KOSDAQ is also narrowing its losses. At the same time, KOSDAQ was down 0.94% from the previous session at 820.82. Individual investors were net buyers of 303.9 billion won, while foreigners and institutions were net sellers of 74 billion won and 227.1 billion won, respectively.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, "Biotech stocks are showing relatively steep weakness because higher interest rates increase discount-rate pressure," and added, "Battery-related stocks are also failing to escape the broad selling pressure, despite positive news for SK On."
[email protected] Han Young-jun Reporter