The KOSPI closed above 7,000 for the first time in five sessions ahead of the National Foundation Day holiday. With global equities on edge over rising U.S. Treasury yields, analysts said volatility could pick up depending on the U.S. jobs report, running through to Samsung Electronics' preliminary earnings release next week.
The KOSPI ended at 7,003.74 on the 2nd, up 32.39 points, or 0.46%, from the previous session, according to the Korea Exchange. The index opened down 33.08 points, or 0.47%, at 6,938.27, then pushed past 7,000 in the afternoon as institutional buying came in. Institutions bought a net 400 billion won, while retail investors and foreign investors sold a net 1.7 trillion won and 140 billion won, respectively.
Market participants described a tug of war between profit-taking ahead of the holiday and buying in artificial intelligence and semiconductor shares, with attention fixed on U.S. Treasury yields.
Samsung Electronics (005930.KS), the KOSPI's largest company by market value, fell as much as 1% during the session but finished the regular session at 276,000 won, unchanged from the previous close. Given that the index had swung around the 6,960 level during the day, analysts said Samsung Electronics' late rebound helped lift the benchmark above 7,000. SK hynix (000660.KS) rose more than 1% at one point before closing up 0.44%.
The KOSDAQ topped 900 during the session for the first time in about three months, since July 2 this year, but failed to hold the gain. The index closed at 893.29, down 0.11% from the previous day.
Brokerages said the U.S. September jobs report, due later that night, would set the tone for domestic equities after the holiday. With initial jobless claims holding at low levels, the direction of nonfarm payroll growth and the unemployment rate could be a key variable in gauging the timing of any further rate increase by the U.S. Federal Reserve.
The investment strategy team at LS Securities' research center said in a report that "if Samsung Electronics' preliminary earnings on the 8th of this month beat market estimates, the stock can gain by the size of the beat and defend the downside," while adding that "an easing of rate and geopolitical risks is essential for an immediate expansion in valuations and a return to market leadership."
Lee Kyoung-min, an analyst at Daishin Securities, said that "if the U.S. September jobs report tonight confirms a cooling in hiring, it should help steady U.S. Treasury yields," adding that "rate volatility is likely to drive the market's direction until Samsung Electronics releases its preliminary earnings."
