KOSPI Surges Past 7,100 Following Nasdaq High... Will Foreign Investors Return?

Positive Momentum in Global Stock Markets Amid US-Iran and US-China Negotiation Hopes

Nasdaq Hits All-Time High on Meta AI Agent Success

KOSPI Rally May Continue if Foreign Investors Return

On the 22nd, the KOSPI index opened at 7161.61, up 153.89 points from the previous trading day. The current status of the domestic stock market is displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. September 22, 2026. Photo by Kang Jinhyung

The KOSPI index surpassed 7,100, buoyed by expectations of easing tensions in the Middle East and news about the strong popularity of Meta's artificial intelligence (AI) agent 'Muse', which drove the Nasdaq to a new all-time high.

Positive Momentum in Global Stock Markets Amid US-Iran and US-China Negotiation Hopes

As of 10:04 a.m. on September 22, the KOSPI was trading at 7,136.20, up 1.83% from the previous trading day. The KOSDAQ was also up 1.09% at 845.38.

Korean markets tracked gains in the New York stock market overnight, as optimism grew regarding peace negotiations between the United States and Iran. The Dow Jones Industrial Average rose by 0.71%, while the Standard & Poor's (S&P) 500 Index and the Nasdaq Composite climbed by 1.49% and 2.26%, respectively. The Nasdaq closed at an all-time high of 27,122.09.

Expectations that U.S. President Donald Trump might meet with Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York later today led to declines in international oil prices and U.S. Treasury yields. News that Chinese President Xi Jinping would make his first state visit to the United States in 11 years, from September 23 to 25, was also a positive factor for the stock market.

Shares of Meta soared 11% following reports of the tremendous popularity of its personal AI agent 'Muse.' Renewed AI optimism sent shares of semiconductor design company Arm up 17.2%, while Intel jumped 12.1%. AMD also rose 10% on expectations for growing demand in AI computing. The Philadelphia Semiconductor Index surged 4.29% as well.

Suh Sangduk, Managing Director at Mirae Asset Securities, explained, "The drop and stabilization in international oil prices and Treasury yields, fueled by expectations for a U.S.-Iran presidential summit, prompted U.S. markets to open higher. Additional gains followed news about the success of Meta's Muse. Hopes for a U.S.-China summit further spurred risk appetite."

Semiconductor stocks are also leading the gains in the Korean stock market. As of 10:09 a.m., Samsung Electronics was trading at 280,250 won, up 2.28% from the previous session. SK hynix also rose 3% to 1,924,000 won. SK Square (up 3.02%), Samsung Electro-Mechanics (up 5.53%), LG Energy Solution (up 0.28%), and Hyundai Motor Company (up 2.51%) are among other advancing stocks.

KOSPI Rally May Continue if Foreign Investors Return

Securities industry experts highlighted the "return of foreign investors" as the key to further gains in the stock market. They pointed out that for a sustained rebound, foreign investors need to ramp up their purchases of domestic equities.

According to Shin Young Securities, three conditions must be met for foreign investors to buy large quantities of domestic stocks: reduced market volatility, weakened individual buying momentum, and the emergence of new information that exceeds existing expectations. Currently, Shin Young Securities assessed that two of those conditions — lower volatility and increased individual selling — are being met.

Lee Sangyeon, an analyst at Shin Young Securities, stated, "Large-scale buying by foreign investors tends to be most prominent not just when prices fall sharply, but when volatility has subsided and individuals are selling, particularly if new buying catalysts emerge. One may look to upcoming events such as the U.S.-China summit and earnings releases from Micron and Samsung Electronics as sources of such new information," he explained.

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