Korean stocks recovered above the 7000 level on the 23rd, with KOSPI trading at 7019 as of 9:12 AM, driven by strong foreign buying and a semiconductor stock rebound. The rally was fueled by foreign investors' net purchases of 326.4 billion won amid expectations that Alphabet's continued large-scale artificial intelligence (AI) investments would translate into semiconductor demand, despite concerns over deteriorating cash flow. Alphabet raised its capital expenditure guidance to $205 billion, with its cloud revenue surging 82% year-over-year, reinforcing market optimism around AI infrastructure spending benefiting Korean chipmakers.
KOSPI Opens 2.44% Higher at 6963.35 on Foreign Buying
According to the Korea Exchange on the 23rd, KOSPI opened at 6963.35, up 2.44% from the previous trading day. The index expanded its gains and was trading at the 7019 level as of 9:12 AM. In the securities market, foreign investors were net buying 326.4 billion won as of 9:10 AM. In contrast, retail investors and institutions were net selling 187.6 billion won and 129.7 billion won, respectively.
Samsung Electronics and SK Hynix Surge Over 4%
Most large-cap stocks showed strong performance. Samsung Electronics was trading at 271,250 won, up 10,750 won (4.13%) from the previous trading day. SK Hynix rose 87,000 won (4.75%) to 1,917,000 won, while SK Square recorded 1,270,000 won, up 40,000 won (3.25%). Samsung Electro-Mechanics surged 7.73%, while Samsung Biologics (1.53%), Samsung Life Insurance (3.28%), Samsung C&T (1.13%), KB Financial (1.09%), HD Hyundai Heavy Industries (1.29%), SK (2.88%), and Doosan Enerbility (2.31%) also posted gains. Hyundai Mobis and Shinhan Financial Group declined 0.97% and 0.10%, respectively.
Electronics Sector Leads Gains at 4.43%
By sector, electrical and electronics led the rally with a 4.43% increase. Manufacturing (3.73%), large-cap (3.42%), electricity and gas (2.95%), information technology (IT, 2.87%), medical precision equipment (2.62%), insurance (2.29%), construction (2.19%), and metals (2.16%) also showed strength. Telecommunications (-0.74%), entertainment and culture (-1.68%), textiles and apparel (-0.18%), and food and tobacco (-0.11%) posted declines.
Foreign Investors Net Buy 2.6 Trillion Won
Foreign buying improvement supported the index rebound. Foreign investors net bought a total of 2.6 trillion won in the securities market the previous day, including 1.7 trillion won in the semiconductor sector. This marked the largest daily net buying since May 6. Han Ji-young, a researcher at Kiwoom Securities, stated, "Considering that KOSPI has secured neutral or better factors in terms of charts, earnings, and foreign investor flows, the index falling below 7000 can be interpreted as entering a bottom range. Even if intraday volatility causes psychological confusion, it is necessary to prioritize a strategy of expanding stock positions rather than reducing them at present."
Alphabet Raises Capex Guidance to $205 Billion
Overnight, the US New York stock market closed mixed ahead of Alphabet and Tesla earnings announcements. The Dow Jones Industrial Average fell 0.01%, while the S&P 500 and Nasdaq indices declined 0.14% and 0.57%, respectively. Alphabet, which announced earnings after the market close, stated that cloud division revenue increased 82% year-over-year, significantly exceeding market expectations. Monthly active users of its AI service 'Gemini' also reached 950 million, surpassing forecasts. However, search advertising revenue, a core profit source, slightly missed market expectations, while the company decided to further increase capital expenditure. Alphabet raised its capital expenditure outlook to $205 billion. Concerns were raised that cash flow could deteriorate as investment costs grow faster than revenue increases from AI investments. The market predominantly expects that Big Tech's capital expenditure expansion will lead to increased semiconductor demand for memory and servers. While Alphabet's after-hours stock price showed weakness, US semiconductor stocks including Micron rose in after-hours trading.
FAQ
What caused Korean stocks to recover above 7000 on the 23rd?
KOSPI recovered above 7000 on the 23rd due to strong foreign buying of 326.4 billion won and a semiconductor stock rebound, with Samsung Electronics and SK Hynix rising over 4%. The rally was driven by expectations that Alphabet's increased AI capital expenditure would boost semiconductor demand.
How much did foreign investors buy in Korean stocks?
Foreign investors net bought a total of 2.6 trillion won in the securities market the previous day, including 1.7 trillion won in the semiconductor sector. This represented the largest daily net buying since May 6. As of 9:10 AM on the 23rd, foreign investors were net buying 326.4 billion won.
