[Good Morning Market] Korean Stocks Expected to Rebound on Micron and Export Hopes Despite Mixed U.S. Market

Treasury Yields Rebound and Other Factors
Korean Market Expected to Rebound on Micron's Earnings Surprise

While the U.S. stock market closed mixed as Treasury yields rebounded despite easing inflation concerns, there are outlooks that the Korean stock market will rebound as well, influenced by factors such as Micron's earnings surprise.

On the 30th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 50,906.05, down 443.87 points (0.86%) from the previous session. The S&P 500 index fell 19.3 points (0.25%) to 7,651.54, while the Nasdaq Composite rose 63.52 points (0.24%) to close at 26,861.06.

The August Personal Consumption Expenditures (PCE) index came in lower than market expectations, easing concerns about inflation. Following the PCE release, the probability of a rate hike at the October Federal Open Market Committee (FOMC) meeting decreased, strengthening expectations for a rate pause. Intuitively, a slowing inflation trend combined with a lower probability of rate hikes would typically lead to a decline in the 10-year Treasury yield; however, confusion arose as the 10-year U.S. Treasury yield rose above the 5.3% range during the session.

However, it is a relief that Micron's earnings, announced after the market close, produced results above neutral. Both revenue and earnings per share (EPS) for the third quarter of this year exceeded market expectations, while the gross profit margin was 87%, higher than the market expectation of 86%, demonstrating strong profitability.

On the 29th, employees at the Hana Bank headquarters dealing room in Jung-gu, Seoul, are monitoring the stock market and exchange rates. On that day, the KOSPI index opened at 6,844.41, down 45.33 points (0.66%) from the previous session, and the KOSDAQ opened at 843.87, down 2.71 points (0.32%). 2026.9.29 Photo by Jo Yongjun

As a result, it is expected that the Korean stock market, which closed mixed in the previous session, will also rebound, buoyed by relief over the end of quarter-end rebalancing and Micron's earnings impact. Analysts also noted that expectations for Korea's exports last month are likely to have an influence.

Meanwhile, there are opinions that KOSPI could perform better this month than last month. Han Ji-young, a researcher at Kiwoom Securities, noted, "The KOSPI index recorded 0.3% last month and remained largely range-bound," but also pointed out that, "Despite overlapping pressures such as the surge in U.S. interest rates, the AI-slowing narrative, and quarter-end rebalancing sell-offs, the index did not break through its recent lows. This shows that downside rigidity in the market has improved compared to before."

In addition, it is analyzed that there are several events in October that could slow the pace of interest rate hikes, making it unlikely that the uptrend in rates will significantly damage the stock market's trajectory. Researcher Han stated, "Events that could moderate the pace of rate increases—such as the September Consumer Price Index (CPI), employment data, the U.S.-Iran negotiations, and the FOMC—are still ahead. Also, the fact that leading stocks such as semiconductors and hyperscalers are about to begin their third quarter earnings season is another source of relief," he said.

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