KOSPI Surges Past 3,600 Amid Samsung and SK Hynix Momentum

The KOSPI index achieved a historic milestone on October 10, surging past the 3,600 intraday mark for the first time, fueled by strong performances in leading tech stocks. Despite lingering uncertainties surrounding a potential U.S. federal government shutdown, robust gains in blue-chip firms Samsung Electronics and SK Hynix drove market optimism and set the stage for a bullish continuation.

As of 9:25 a.m. KST, the KOSPI stood at 3,598.97 points, marking an impressive gain of 49.76 points, or 1.40%, from the previous session's close at 3,549.21. The index opened firmly at 3,598.11, equivalent to a 1.38% increase, and briefly breached the 3,600 threshold during morning trade.

U.S. Market Weakens Amid Shutdown Concerns, Buoying Korean Optimism

U.S. equity markets closed lower overnight, as investor sentiment wavered on heightened fears of a federal government shutdown. Profit-taking following recent record highs also exerted downward pressure, though key players like Nvidia demonstrated renewed strength, highlighting ongoing interest in AI-driven themes. South Korea's markets, reopening after an extended holiday, appeared to absorb these mixed developments with resilience.

Kiwoom Securities researcher Han Ji-young noted, "The U.S. market experienced robust momentum in AI-linked stocks during Korea's holiday break. While macroeconomic uncertainties such as the potential government shutdown persist, market focus is increasingly shifting toward the upcoming Q3 earnings season."

Han added, "The domestic equity market has maintained a neutral-to-positive stance on overseas developments. With AI themes continuing to drive investor interest, alongside third-quarter earnings and potential policy adjustments, the upward trend in the KOSPI seems sustainable. Investors may find opportunities in adopting a buy-on-dips strategy in the current environment."

Retail and Foreign Buying Propels KOSPI Despite Institutional Selling

Trading dynamics on the Korea Exchange reflected mixed sentiment among market participants. Retail investors emerged as key drivers, purchasing a net 3.44 trillion won worth of stocks, closely followed by foreign investors with a net buy of 1.06 trillion won. However, institutional investors remained net sellers, offloading 4.60 trillion won, indicating a cautious approach amid broader market gains.

Sector leadership underscored the KOSPI's broad-based strength. Manufacturing (up 1.84%), precision medical devices (up 1.05%), securities (up 1.00%), and retail (up 0.65%) were among the top-performing sectors. Transportation equipment parts (-1.56%) and general services (-0.07%), however, lagged behind, reflecting selective consolidation.

Samsung and SK Hynix Push Higher, While KOSDAQ Faces Challenges

Tech heavyweights underpinned KOSPI's record-breaking rally. Samsung Electronics advanced sharply by 4.49% to 93,000 won, while SK Hynix soared 7.33% to 424,500 won—both reaching 52-week highs. In contrast, certain sectors faced pressure as Hanwha Aerospace slid 4.38% and LG Energy Solution plunged 10.28%, causing uneven sentiment within specific industries.

Meanwhile, the KOSDAQ index, which focuses on smaller-cap and tech-driven companies, posted a modest gain of 1.50 points (0.18%) to reach 855.75 during the morning session. The index initially opened higher at 858.86 but lost some traction as trading progressed.

Retail investors dominated activity on the KOSDAQ, with net purchases totaling 1.45 trillion won. However, foreign traders and institutional investors were net sellers, shedding positions worth 800 billion won and 584 billion won, respectively.

KOSDAQ industry performance varied, showcasing strength in machinery equipment (up 1.79%), electrical and electronics (up 0.76%), and precision medical devices (up 0.28%). On the downside, sectors such as metals (-1.12%), transportation equipment parts (-0.86%), and entertainment (-0.22%) faced declines.

Among prominent KOSDAQ components, losses were widespread. Large-cap stocks like EcoPro BM (-2.41%), Peptron (-1.83%), PharmaResearch (-1.64%), and HLB (-1.84%) ended lower. A few outliers, such as Rainbow Robotics (up 0.16%) and Rigachem Bio (up 0.33%), managed minimal gains.

Korean Won Weakens Amid External Pressures

In the foreign exchange market, the Korean won depreciated sharply against the U.S. dollar. The currency opened at 1,423.0 won per dollar, a significant decline of 23.0 won compared to the prior session's close of 1,400 won.

The extended Chuseok holiday, compounded by external uncertainties and the strength of the greenback, exerted downward pressure on the local currency. This depreciation adds another layer of complexity for South Korean markets, especially amidst global macroeconomic concerns.

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By maintaining upward momentum amidst global uncertainties, the KOSPI’s rise past the 3,600 threshold represents a pivotal achievement, reflecting local market strength and investor confidence driven by leading tech stocks. However, as institutional caution and external pressures on the Korean won persist, market participants will watch upcoming earnings and global developments closely.