KOSPI and KOSDAQ Surge on U.S. Tailwinds... 'Buy-Sidecars' Triggered in Both Markets

KOSPI surges more than 4% early in the session
Bargain hunting and sharp drop in oil prices
Easing geopolitical tensions in the Middle East

The KOSPI and KOSDAQ surged together early in the session, triggering buy-sidecars, which temporarily suspend program buy orders, one after another in both markets. Investor sentiment recovered amid a rally in U.S. tech stocks and a sharp drop in international oil prices.

On the 10th, the KOSPI, KOSDAQ and won-dollar exchange rate were displayed in the dealing room at Hana Bank's headquarters in Jung-gu, Seoul. The KOSPI began trading at 5,247.22, up 228.37 points (4.55%) from the previous session, while the KOSDAQ opened at 661.73, up 22.76 points (3.56%). Photo by Kim Hyunmin

The KOSPI opened at 5,247.22 on the 10th, up 4.55% from the previous trading day, and was trading at 5,235.57, up 4.32%, as of 9:50 a.m. At 9:06 a.m., program buy orders were suspended for five minutes due to a fluctuation in the KOSPI 200 futures index. This was the 58th time a sidecar had been triggered on the KOSPI this year, and the 28th time for a buy-sidecar. The KOSPI also touched 5,300.92 during the session. At the same time, the KOSDAQ was trading at 657.42, up 2.89%. The KOSDAQ also suspended program buy orders for five minutes at 9:10 a.m. due to fluctuations in the KOSDAQ 150 futures price and the spot index.

Overnight, all major U.S. stock indexes rose. On Nov. 9 (local time), the Dow Jones Industrial Average closed at 52,389.75, up 1,104.02 points (2.15%) from the previous session, on the New York Stock Exchange (NYSE). The S&P 500 rose 173.08 points (2.35%) to 7,549.94, while the tech-heavy Nasdaq Composite gained 673.71 points (2.74%) to close at 25,253.14.

In particular, bargain hunting in semiconductor stocks drove the gains. AMD (13.26%), Broadcom (8.78%), Marvell Technology (9.49%), Micron Technology (6.25%) and SK hynix ADR (5.53%) surged. The Philadelphia Semiconductor Index also rose by about 7%. Nvidia, by contrast, fell 4.27% after CEO Jensen Huang admitted to having an affair with a businesswoman suspected of being a spy linked to Chinese intelligence agencies.

Falling international oil prices also supported the stock market's gains. West Texas Intermediate (WTI) futures settled at $86.85 per barrel on the New York Mercantile Exchange, down 4.38% from the previous trading day. Brent crude futures, the global benchmark, also closed at $92.57 per barrel, down 5.85%. The declines followed U.S. President Donald Trump's remarks that the possibility of large-scale additional strikes against Iran was very low. Analysts said that, as geopolitical tensions stemming from the Middle East ease, markets are likely to become less sensitive to the factors that have unsettled stocks since last month.

Experts said the domestic stock market is likely to sustain its solid rebound. Seo Sangyoung, an analyst at Mirae Asset Securities, said, "The sharp drop in international oil prices as concerns over a conflict between the United States and Iran ease will have a positive effect on investor sentiment. The market may digest profit-taking after a strong early-session rally, but the solid trend is likely to continue." Han Jiyoung, an analyst at Kiwoom Securities, said, "The market is poised to rebound, supported by the strength of the Philadelphia Semiconductor Index, which surged after overcoming negative news about Nvidia, and by the more than 5% jump in KOSPI 200 night futures. At this point, it is appropriate to make the increased attractiveness of entering the domestic stock market the top strategic priority."

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