The KOSPI climbed back above 7,000 in intraday trading ahead of the Chuseok holiday, as a second straight day of gains in U.S. chip stocks and record exports in early September revived sentiment toward semiconductors. Analysts said whether the index can hold above 7,000 this week will hinge on U.S. long-term yields, foreign investor flows and the market's reaction to the U.S.-China summit.
The KOSPI opened on the 21st at 6,938.34, up 44.11 points or 0.64% from the previous session, then widened its gains to move past 7,000, according to the Korea Exchange. It was the first time the index had traded above 7,000 in eight sessions, since the 9th of this month. Shortly after the open, retail investors and foreign investors bought a net 46.5 billion won and 20.1 billion won of shares, respectively, while institutions sold a net 74.4 billion won.
Large-cap chipmakers led the advance. Samsung Electronics traded at 268,000 won, up 2.68%, and SK hynix at 1.878 million won, up 1.13%. Samsung Electro-Mechanics rose 2.31%, Hanwha Aerospace 3.06% and KB Financial Group 0.86%. Hyundai Motor fell 0.96% and LG Energy Solution 0.69%.
A continued rally in U.S. semiconductor shares also supported the Korean market. The Philadelphia Semiconductor Index rose 2.78% on the 18th, its second consecutive sharp gain. Micron added 3.92%, Broadcom 2.97%, AMD 2.70% and Nvidia 1.34%. The Dow Jones Industrial Average slipped 0.18%, while the Standard & Poor's 500 and the Nasdaq Composite rose 0.17% and 0.39%, respectively.
The KOSDAQ also opened higher, starting at 830.71, up 3.59 points or 0.43% from the previous session. Retail investors bought a net 54.1 billion won, while foreign investors and institutions sold a net 31.8 billion won and 18.2 billion won, respectively.
Moves among the largest KOSDAQ stocks were mixed. Alteogen traded at 257,000 won, up 1.38%, while EcoPro gained 0.25% and EcoPro BM 0.10%. Among chip equipment makers, Wonik IPS rose 4.94% and EO Technics 1.10%. Rainbow Robotics fell 0.23%, LEENO Industrial 0.14% and Robotis 1.14%.
Trade data released the same day strengthened expectations for corporate fundamentals in early trading. Exports in the first 20 days of September totaled $71.4 billion, up 78.3% from a year earlier and the highest on record. With market attention shifting from interest rates themselves to corporate earnings and the economy after the September Federal Open Market Committee meeting, the strong export figures are supporting earnings expectations for semiconductors and other key Korean industries.
Whether foreign buying continues is another focus. The KOSPI closed at 6,894.23 on the 18th, up 2.66%, with foreign investors turning to net purchases of 438.8 billion won for the first time in eight sessions. Institutions bought 1.5055 trillion won. Han Ji-young, a researcher at Kiwoom Securities, said the key points to watch are whether the KOSPI can keep lifting its lows and the direction of trading by foreign investors, who turned net buyers after eight sessions.
Later this week, a U.S.-China summit and the Chuseok holiday lie ahead. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a summit in Washington on the 24th, with an extension of the trade truce, tariffs, artificial intelligence and critical minerals cited as key agenda items. Because Korean markets close from the same day, the summit's outcome may be priced in all at once after the holiday.
Falling turnover and a gap in trading flows just before the holiday could amplify short-term volatility. Han put this week's KOSPI range at 6,500 to 7,150, saying there is a chance of a path in which a wait-and-see mood spreads, turnover declines and order books thin out, leaving a vacuum in supply and demand. Lee Kyoung-min, a researcher at Daishin Securities, cited a break above and a hold at the major moving averages located between 6,900 and 7,100 as the near-term turning point.
