[Good Morning Market] "KOSPI Expected to Strengthen on SK hynix ADR Listing and Easing Geopolitical Tensions"

U.S. Stock Market Closes Higher Across the Board

Eased War Tensions, Renewed Optimism for AI Investment

"ADR Listing Expected to Reverse Market Sentiment"

There is an outlook that the domestic stock market will show strength due to the easing of geopolitical uncertainties and the listing of SK hynix's American Depositary Receipts (ADR).

On the 9th, at the Hana Bank headquarters dealing room in Jung-gu, Seoul, employees are monitoring the stock market and exchange rates as the KOSPI successfully rebounded after two consecutive days of sharp decline. The KOSPI opened at 7,486.64, up 239.85 points (3.31%) from the previous session, and the KOSDAQ also started up 9.03 points (1.15%) at 794.03, continuing its upward trend. 2026.7.9 Photo by Jo Yongjun

On July 9 (local time), the New York stock market in the United States rose across the board. The Nasdaq Composite Index closed at 26,206.89, up 336.24 points (1.30%) from the previous session. The Dow Jones Industrial Average rose 139.02 points (0.27%) to 52,487.41, while the S&P 500 gained 60.93 points (0.81%) to close at 7,543.64.

Although tensions continue between the United States and Iran, including the U.S. attacking an Iranian commercial vessel in the Strait of Hormuz, stock indices rose on expectations that geopolitical risks will ease. This is because there is a possibility of resumed negotiations, as neighboring countries are attempting to mediate and U.S. President Donald Trump has not expressed any intention to resume military action.

The market's sensitivity to geopolitical uncertainty is decreasing. According to a Bank of America (BofA) fund manager survey at the end of last month, war ranked only fourth as a potential risk factor, following inflation, the artificial intelligence (AI) bubble, and a sharp rise in interest rates. The market is more sensitive to changes in the AI investment cycle and policy shifts by the U.S. Federal Reserve (Fed).

Revived expectations for AI investment also boosted stock indices. Concerns about instability in the AI industry eased following news of Micron’s additional $250 billion investment in the United States and Meta’s expansion of in-house AI chip production and investment. Micron and Meta rose 4.4% and 4.7%, respectively.

The domestic stock market is expected to be strong today, driven by expectations of resumed negotiations between the U.S. and Iran as well as positive developments originating from the U.S.

Recently, the domestic market has shown a pattern of strong openings, greater intraday volatility, and either weak closes or reduced gains by the end of trading. This is due to concerns such as the possibility of reduced AI investment by big tech, worries about a slowdown in earnings growth, and volatility in supply and demand from single-stock leveraged exchange-traded funds (ETFs).

However, many of these concerns are likely to be resolved to a significant degree. Not only did stocks like Micron rebound, but Meta’s announcement of plans to expand computing infrastructure this year and next has eased concerns about excessive investment among hyperscale companies.

There are also upcoming events that could reverse the market sentiment. Today, SK hynix's ADR listing is scheduled, followed by ASML's earnings announcement on July 15 and TSMC's earnings release on July 16.

Ji Young Han, a researcher at Kiwoom Securities, said, "At this point, it is important to watch the initial performance and subsequent momentum of SK hynix's ADR listing. While the success of the ADR listing may not provide a diagnosis of the memory market's dynamics, it can serve as a catalyst to improve overall investor sentiment in the KOSPI, including the semiconductor sector, which had cooled off."

This content was produced with the assistance of AI translation services.